Resilient in Growth...

Transcription

1 annual report 11 Resilient in Growth......Rooted in Strength

2 CONTENTS Framework & Commitments 04 IJM Charter 05 Our Vision, Mission and Culture Statement 06 Corporate Profile 08 Group Structure 10 IJM in the Headlines 11 Corporate Diary Shareholder Summary of Information 36 Group Financial Highlights 37 Group Quarterly Performance 38 Statement of Value Added & Distribution 39 Information for Investors 41 Analysis of Shareholdings & Warrantholdings 49 Employees & Productivity Corporate Responsibility 119 Marketplace 122 Environment 124 Community 129 Workplace Organisation & Stewardship 18 Board of Directors & Secretary 20 Profile of Directors 28 Group Organisation Chart 30 Profile of Senior Management Business Review & Reports 52 Chairman s Statement 58 CEO s Review of Operations 84 Corporate Governance Statement 93 Audit Committee Report 96 Statement on Internal Control 102 Quality Report 105 Health, Safety and Environment Report Financial Statements & Others 136 Financial Statements 287 List of Top 10 Properties 290 Notice of Annual General Meeting 291 Form of Proxy 293 Corporate Information

3 1 Leveraging on our strengths... to maintain continuous growth By staying rooted to our values, capabilities and expertise, the IJM Group has evolved and grown over the years, continuing to enhance value for all of its stakeholders. The flourishing tree represents our deep-rooted commitment which, nourished by our diverse businesses, is able to withstand the changes and challenges in any environment, as we continue to nurture lives in every aspect of our operations.

4 Shared Vision Framework & Commitments 04 IJM Charter 05 Our Vision, Mission and Culture Statement 06 Corporate Profile 08 Group Structure 10 IJM in the Headlines 11 Corporate Diary

5 3 Nothing stops our businesses from reaching their shared vision. We strive for excellence and efficiency in our quest to enhance our position as a dynamic industry leader.

6 4 IJM Charter Our business policy and conduct continues to be guided by a strong commitment towards... Quality Products & Services Trusted Client Relationships Safety, Health & Environment Employee Welfare Social Responsibility Good Corporate Governance Maximising Stakeholder Returns Ethical Conduct IJM CORPORATION BERHAD

7 5 Our Vision To be an internationally competitive Malaysian builder of world-class infrastructure and buildings. Our Mission To deliver the highest standards of performance in all our ventures with the IJM Mark of Excellence. Our Culture We strive to: uphold the highest standards of professionalism and exemplary corporate governance to maximise the benefits for all stakeholders; respect the different cultures, gender, religion, human rights and dignity of our stakeholders; ensure the quality of our products and services exceeds our customers expectations; create a conducive environment for team spirit among our employees to work towards a unified workforce; and be a responsible and respected corporate citizen with concerns for social, safety, health and environmental issues. ANNUAL REPORT 2011

8 6 Corporate Profile IJM is one of Malaysia s leading conglomerates and is listed on the Main Market of Bursa Malaysia Securities Berhad ( Bursa Securities ). Its core business activities encompass construction, property development, manufacturing and quarrying, infrastructure concessions and plantations. Headquartered in Selangor, Malaysia, IJM s regional aspirations have seen it establish a growing presence in neighbouring developing markets with operations presently spanning 10 countries, with primary focus in Malaysia, India, United Arab Emirates, China and Indonesia. IJM s phenomenal growth over the past two and a half decades has been the result of its unwavering focus on its core competencies, diversification into strategically related businesses and selective expansion into new markets. IJM s excellent track record is well recognised and has been accredited with numerous awards. Recent accolades include: The Malaysian Construction Industry Excellence - Contractor of the Year Award 2009 The Malaysian Construction Industry Excellence (International Achievement) Award in 2007, 2006 and 2001 The MITI Excellence Award for Export of Services in 2007 and 2003 The Malaysian International Contractor of the Year Award in 2005 and 2000 The Road Engineering Excellence Award in 2004 The Project Award in Major Skill Project in 2004 and Major Building Category in 2003 The Malaysian Builder of the Year Award in 2002 and 2001 The Company s culture of professionalism, performance and good governance as well as care for society and the environment has also seen it being conferred: The Malaysian Corporate Governance Index - Industry Excellence Award (Construction) 2010 and Merit Award 2009 The NACRA Industry Excellence Awards (Construction and Infrastructure) in 2009, 2008, 2007, 2006, 2004 and 2003, and Merit Award in 2010 The Malaysian Construction Industry Excellence (Environmental Best Practices Special Mention Award) in 2008 The Prime Minister s CSR Awards (Environment Category) in 2007 Gold Medal Award for Occupational Safety & Health National Excellence in 2007 The Asia Money Best Managed Company (Mid Cap) in Malaysia in 2006 The Top 200 PLCs Corporate Governance Survey Report in 2006 (Ninth Place) The ACCA Malaysia Environmental and Social Reporting Award in 2006 (Second Runner-up in Best Social Reporting) The KLSE Corporate Merit Award (Construction Sector) in 2003, 2002 and 2001 The inaugural Malaysian Business Corporate Governance Award in 2002 Municipal Corporation of Delhi Building, New Delhi, India Metavilla homes at Seremban 2 Township, Negeri Sembilan The result of a merger between three medium-sized local construction companies - IGB Construction Sdn Bhd, Jurutama Sdn Bhd and Mudajaya Sdn Bhd, IJM was formed in 1983 to compete more effectively against bigger foreign rivals. The Company began to quickly establish itself as a professionally managed construction group and rapidly gained market acceptance. Over the years, the Company progressively built on its delivery capabilities, competitive prowess and financial capacity to strengthen its footing as a reputable local contractor. In April 2007, IJM acquired the Road Builder Group ( RBH ), its nearest competitor, to augment its position as one of the country s biggest builders. In addition to bolstering its construction order book, property land bank and infrastructure portfolio, the enlarged Group enabled IJM to attain considerable synergistic benefits from the merger, greater local prominence as well as attain a more sizeable balance sheet to bid for larger jobs and facilitate its expansion into overseas markets. IJM s undertaking as a property developer began as a natural progression from its experience in the construction business. The Group s property arm has since grown considerably. Listed on the Main Market IJM CORPORATION BERHAD

9 7 left to right: THE EDGE Billion Ringgit Club 2010 Malaysian Corporate Governance Index - Industry Excellence Award (Construction) 2010 ACCA Malaysia Sustainability Reporting Awards (MaSRA) 2010 NACRA Merit Award 2010 Batching plant in Bachupally, India New planting with leguminous cover crop First oil rig berthed at Kuantan Port, Pahang of Bursa Securities, IJM Land Berhad is presently one of the largest property developers in Malaysia with sprawling townships, commercial buildings and high-rise condominiums under development in key growth areas throughout the country. The Group has also made substantial inroads as a reputable developer into India in recent years. Besides that, it had also successfully undertaken ventures overseas in the past such as in Orlando USA, Singapore and Australia. Initially supporting in-house needs, the Group s Industry Division quickly grew its operations into scalable core activities focused on demand outside the Group. IJM continued to expand on its operations in this division with strategic acquisitions such as the takeover of Industrial Concrete Products Berhad in 2004 and successful market diversifications into China, India and Pakistan. Leveraging on its construction expertise, the Group also targeted infrastructure investments to create longterm recurrent income streams. Initial advancements into concession assets in Malaysia, however, proved elusive and, thus, an international focus was adopted. IJM s involvement in overseas infrastructure privatisation (Build-Operate-Transfer) schemes met with considerable success. Amongst the Group s present investments in major overseas infrastructure projects are the Western Access Tollway in Argentina, five tolled highways and the Gautami power plant in India, and the Binh An water treatment concession in Vietnam. In Malaysia, the Group operates three highways and port concessions, mainly from the RBH merger. The Group had previously invested in and profitably sold several infrastructure assets in China. The Group also showed considerable foresight by venturing into plantations in 1985 as a source of steady income to cushion the cyclical nature of its core construction business. This investment has since paid off handsomely. Now listed on the Main Market of Bursa Securities, IJM Plantations Berhad has contributed significantly to the Group s earnings over the years and has also accorded the Group better resilience to weather macro-economic and input costs volatilities. It is currently expanding its plantation operations into Indonesia. When IJM went public in 1986, it had a market capitalisation of RM66 million and total assets of RM172 million. As at 31 March 2011, the Group s market capitalisation and total assets stood at around RM8.7 billion and RM12.6 billion respectively. ANNUAL REPORT 2011

10 8 Group Structure CONSTRUCTION PROPERTY IJM CORPORATION BERHAD ( A) Note: Non-operating or dormant companies are not included Direct subsidiary/associate/jointly controlled entity of IJM Corporation Berhad n Subsidiaries n Associates n Jointly Controlled Entities Direct subsidiary/associate of Road Builder (M) Holdings Direct subsidiary of IJM (India) Infrastructure Limited, a subsidiary of IJMII (Mauritius) Limited! Direct jointly controlled entity of IJM Vijayawada (Mauritius) Limited & Direct subsidiary of IJMII (Mauritius) Limited, subsidiary of IJM Investments (M) Limited $ Associate of IJM International Limited ^ Wholly-owned subsidiary of RB Port Sdn Bhd, a wholly-owned subsidiary of Road Builder (M) Holdings Bhd # Associate of IEMCEE Infra (Mauritius) Limited * Associate of IJMII (Mauritius) Limited H Associate of KP Port Services Sdn Bhd O Direct jointly controlled entity of IJM Trichy (Mauritius) Limited u Direct subsidiary of RB Manufacturing Sdn Bhd, a wholly-owned subsidiary of IJM Corporation Berhad IJM Construction Sdn Bhd Road Builder (M) Sdn Bhd Commerce House Sdn Bhd IJM Building Systems Sdn Bhd IJM Construction Vietnam Company Limited IJM Investments J. A. Limited IJM Gulf Limited IJM Gulf Pakistan (Pvt) Limited IM Technologies Pakistan (Private) Limited Karachi Expressway J. A. Limited Ground Envirotech Pte Ltd IJM Construction (Pakistan) (Private) Limited Jurutama Sdn Bhd Prebore Piling & Engineering Sdn Bhd CSC Ground Engineering Sdn Bhd Hexacon Construction Pte Limited Integrated Water Services (M) Sdn Bhd Highway Master Sdn Bhd Ambang Usaha Sdn Bhd ECC-IJM Joint Venture Hafeera-IJM Joint Venture IJMC-Liberty Properties Joint Venture IJMC-Norwest Joint Venture IJMC-Peremba Joint Venture IJMC-Perkasa Sutera Joint Venture IJMC-Puncabahan Joint Venture IJMC-Teratai Joint Venture ISZL Consortium Shimizu-Nishimatsu-UEMB-IJMC Joint Venture Kiara Teratai-IJM Joint Venture IJMC-JAKS Joint Venture IJM Construction (Middle East) Limited Liability Company Nilai Cipta Sdn Bhd IJM (India) Infrastructure Limited & IJM (India) Geotechniques Private Limited IJM Land Berhad IJM Properties Sdn Bhd Aqua Aspect Sdn Bhd Chen Yu Land Sdn Bhd Cypress Potential Sdn Bhd IJM Management Services Sdn Bhd Jelutong Development Sdn Bhd Liberty Heritage (M) Sdn Bhd Manda'rina (M) Sdn Bhd NS Central Market Sdn Bhd Sinaran Intisari (M) Sdn Bhd Suria Bistari Development Sdn Bhd Worldwide Ventures Sdn Bhd RB Land Sdn Bhd Aras Varia Sdn Bhd Casa Warna Sdn Bhd Dian Warna Sdn Bhd RB Property Management Sdn Bhd Seremban Two Holdings Sdn Bhd Seremban Two Properties Sdn Bhd Seremban Two Property Management Sdn Bhd Shah Alam 2 Sdn Bhd Titian Tegas Sdn Bhd Tarikan Abadi Sdn Bhd Unggul Senja Sdn Bhd Sova Holdings Sdn Bhd Emko Properties Sdn Bhd Emko Management Services Sdn Bhd ERMS Berhad Holiday Villa Management Sdn Bhd RB Development Sdn Bhd Astaka Tegas Sdn Bhd Cekap Tropikal Sdn Bhd Elegan Pesona Sdn Bhd Good Debut Sdn Bhd IJM Management Services-Giat Bernas Joint Venture IJM Properties-JA Manan Development Joint Venture Radiant Pillar Sdn Bhd Sierra Selayang Sdn Bhd Sierra Ukay Sdn Bhd Valencia Terrace Sdn Bhd Larut Leisure Enterprise (Hong Kong) Limited IJM Australia Pty Limited IJM Lingamaneni Township Private Swarnandhra-IJMII Integrated Township Development Company Private OSW Properties Pty Limited $ NPE Property Development Sdn Bhd IJM CORPORATION BERHAD

11 INDUSTRY PLANTATION I N F R A S T R U C T U R E & OTHERS 9 Industrial Concrete Products Sdn Bhd Durabon Sdn Bhd Expedient Resources Sdn Bhd Tadmansori Rubber Industries Sdn Bhd ICP Investments (L) Limited ICPB (Mauritius) Limited IJM Concrete Products Private Limited IJM Steel Products Private Limited ICP Jiangmen Co. Ltd ICP Marketing Sdn Bhd Malaysian Rock Products Sdn Bhd Aggregate Marketing Sdn Bhd Azam Ekuiti Sdn Bhd IJM Concrete Private Limited IJM Concrete Pakistan IJM Concrete Products Pakistan Private Limited Kuang Rock Products Sdn Bhd Oriental Empire Sdn Bhd Scaffold Master Sdn Bhd Strong Mixed Concrete Sdn Bhd Kamad Quarry Sdn Bhd Kemena Industries Sdn Bhd Cofreth (M) Sdn Bhd Metech Group Berhad Spirolite (M) Sdn Bhd IJM Plantations Berhad Akrab Perkasa Sdn Bhd Berakan Maju Sdn Bhd Desa Talisai Palm Oil Mill Sdn Bhd Desa Talisai Sdn Bhd Excellent Challenger (M) Sdn Bhd Gunaria Sdn Bhd PT Sinergi Agro Industri IJM Agri Services Sdn Bhd IJM Edible Oils Sdn Bhd IJMP Investments (M) Limited IJM Plantations (Mauritius) Limited Minat Teguh Sdn Bhd PT Primabahagia Permai PT Prima Alumga PT Indonesia Plantation Synergy Rakanan Jaya Sdn Bhd Ratus Sempurna Sdn Bhd Sabang Mills Sdn Bhd Sijas Plantations Sdn Bhd Road Builder (M) Holdings Bhd Besraya (M) Sdn Bhd New Pantai Expressway Sdn Bhd Kuantan Port Consortium Sdn Bhd KP Port Services Sdn Bhd KPN Services Sdn Bhd Sukma Samudra Sdn Bhd ^ Konsortium Pelabuhan Kemaman Sdn Bhd KP Depot Services Sdn Bhd H IJM Investments (M) Limited IEMCEE Infra (Mauritius) Limited IJMII (Mauritius) Limited Roadstar (India) Infrastructure Private Swarnandhra Road Care Private IJM Rajasthan (Mauritius) Limited Jaipur-Mahua Tollway Private Limited IJM Rewa (Mauritius) Limited Rewa Tollway Private Limited IJM Trichy (Mauritius) Limited IJM Vijayawada (Mauritius) Limited Gautami Power Private Limited # Swarna Tollway Pte Ltd * IJM International Limited IJM Investments (L) Ltd IJM Highway Services Sdn Bhd Kuching Riverine Resort Management Sdn Bhd u CIDB Inventures Sdn Bhd Emas Utilities Corporation Sdn Bhd Grupo Concesionario del Oeste S. A. Kumpulan Europlus Berhad Lebuhraya Kajang-Seremban Sdn Bhd Trichy Tollway Private Limited O Vijayawada Tollway Private Limited! ANNUAL REPORT 2011

12 10 IJM IN THE HEADLINES The IJM Group continued making headlines in the financial year ended 31 March 2011 amidst a period of economic recovery. IJM CORPORATION BERHAD

13 Corporate Diary April 2010 Futsal Sports Planet, Sunway Kelab Sukan IJM ( KSIJM ) organised a futsal tournament to promote a healthy work-life balance amongst staff. 18 May Conference and Exhibition on Coastal Engineering Management Singapore Industrial Concrete Products Sdn Bhd ( ICP ) participated in the conference organised by International Quality and Productivity Center and showcased its spun piles in the exhibition June 8th IJM Games Kuantan, Pahang The Infrastructure Division hosted the biennial inter-division games participated by over 500 IJM staff in various sports events and the overall champion was the Plantation Division. 22 April Inauguration of MCD New Delhi, India The Municipal Corporation of Delhi ( MCD ) Building, the city s tallest building built by IJM, was inaugurated by Home Minister, P. Chidambaram. The MCD Building is shown on page June We Go Green World Environment India ICP India planted trees to mark the World Environment Day and promoted the green concept amongst staff and the society. 13 June Memorandum of Understanding ( MoU ) between USM, Sanggar SAINS & IJM A MoU was entered into to build a Science Park in USM as a centre for innovation and research development in the field of Science, Community and Arts. 02 July Senior Management Holiday Villa Hotel & Suites Subang The Board, senior management and project managers attended the annual dialogue themed IJM in the Next Decade where group and divisional performances, operational strategies and other issues were discussed. 03 May UBS Malaysia Corporate Sydney, Australia IJM met with various institutional investors in one-on-one meetings. ANNUAL REPORT 2011

14 12 Corporate Diary (cont d) 03 July Annual Dinner Boogie Nite Sunway Resort Hotel & Spa IJM staff attended the annual dinner party with great food, fantastic music and live performances. 11 July Visit by Sabah Forestry Department and Japanese IJM Plantations The visit was to evaluate the potential collaboration on mangrove forest rehabilitation. 04 August IJM Scholarship Award Holiday Villa Hotel & Suites Subang IJM presented the Scholarship Awards to 21 deserving recipients this year. In addition, 31 children of employees received the Academic Excellence Awards. 10 July Heartiest Congratulations to Dato Teh Kean Ming Yang Di-Pertua Negeri Pulau Pinang, Tun Dato Seri Haji Abdul Rahman bin Haji Abbas conferred the Darjah Setia Pangkuan Negeri (D.S.P.N) which carries the title Dato to our CEO & Managing Director on the occasion of His Excellency s birthday. 03 August Merdeka Outing for School Kuala Lumpur & Penang About 400 school children mainly from low income families were treated to a memorable trip focusing on historical and iconic sites of the city in tandem with the Merdeka theme. 09 August Completion of Lebuhraya Kajang-Seremban ( LEKAS ) LEKAS Highway connecting Kajang to Senawang was officially completed with the opening of Paroi Junction. The ceremony was officiated by Works Minister, Y.B. Dato Shaziman Bin Hj. Abu Mansor. IJM CORPORATION BERHAD

15 13 25 August Holiday Villa Hotel & Suites Subang IJM held its 26th Annual General Meeting and the shareholders approved resolutions to receive the audited financial statements, reappointment of directors and auditors, among others. 05 September A Day of Fun with the KLCC 117 children from 6 homes were treated to a fun-filled outing at the Aquaria and Petrosains KLCC which concluded with a lovely dinner at the ECOBA restaurant in Damansara Perdana. 30 September A Contrarian View of Corporate Wisma IJM CEO of Securities Industry Development Corporation, the training and development arm of the Securities Commission Malaysia, Mr. John Zinkin gave an enlightening talk on implementing good governance in an Asian context. 31 August Visit to Old Folk s Pahang In conjunction with National Day, our Port Division visited 8 old folk s homes to distribute food and goodies as well as bringing joy to them September CLSA Investor Hong Kong IJM met with numerous fund managers to present on its business outlook and financial performance. 18 September Mid-Autumn S2 City Park, Seremban IJM Land in collaboration with Chinese associations in Seremban showcased 70 giant lanterns from China and celebrated the mid-autumn festival that was graced by Y.B. Tan Sri Dr Koh Tsu Koon, Minister in the PM s Department. 07 October The Edge Top Property Developers Awards 2010 IJM Land was listed as one of the Top 10 Property Developers for 2010, demonstrating a great accomplishment for our property arm. ANNUAL REPORT 2011

16 14 Corporate Diary (cont d) 26 October Budget 2011 Wisma IJM Mr. Steve Chia, Tax Senior Executive Director of PricewaterhouseCoopers presented the highlights and implications of the budget. 02 November Singapore Accreditation Council Certification for Ready-Mixed Concrete Industry Division s 7 batching plants were successfully certified to conform to SS EN 206-1:2009, SS 544-1:2009, SS 544-2:2009 and SAC CT06:2010 for the export of concrete products to Singapore. 14 December Donation to 1MCA Medical Foundation As part of its corporate responsibility welfare initiatives, IJM donated RM200,000 to the foundation. 22 & 30 December Green Building Index ( GBI ) Penang IJM Land was awarded the GBI certification for The Light Linear and The Light Point projects, being the first developer in Penang to obtain the certification for high-rise properties January Changes in Top Management Dato Teh Kean Ming was appointed as CEO and Managing Director while Mr. Tan Gim Foo was appointed as Deputy CEO & Deputy Managing Director. Tan Sri Dato Krishnan Tan was redesignated as Executive Deputy Chairman. 28 January National Annual Corporate Report Awards ( NACRA ) Kuala Lumpur IJM received the Merit Award at the Dinner & Award Ceremony held at the Sime Darby Convention Centre. 14 December Malaysian Corporate Governance Index - Industry Excellence Award (Construction) Kuala Lumpur IJM received the Award from the Minority Shareholder Watchdog Group at the Renaissance Hotel. IJM CORPORATION BERHAD

17 15 16 February Chinese New Year Wisma IJM Over 450 staff attended the event filled with performances like lion dance, 24 festive drums, a chinese orchestra and great food. 21 February Asia-Pacific Chinese Entrepreneurs ( APCE ) Kuantan Port 50 investors from APCE Association together with East Coast Economic Region Development Council officials visited our port and were briefed on the facilities and services March Family Pahang Our Port Division successfully organised a family day event themed 1 KPC-Family Fiesta 2011 at the Bukit Gambang Theme Park. 16 February Scholar-Mentor Wisma IJM A scholar-mentor get-together was held as part of the mentoring programme to provide IJM scholars with counseling and guidance in their studies and to facilitate career development. 16 February MPOB Code of Practices ( CoP ) IJM Plantations Our plantation operations in Sabah were certified with MPOB s CoP for quality, food safety and sustainability. 10 March DPM s New Delhi, India Deputy Prime Minister of Malaysia, Tan Sri Muhyiddin bin Haji Mohd Yassin visited our Delhi Metro Rail Corporation, Airport Metro Express Line Package C2 project. 31 March Plantation Expansion in Indonesia IJM Plantations successfully completed field planting totaling over 13,000 hectares in Kalimantan March Credit Suisse Asian Investor Hong Kong IJM took part in one-on-one and small group meetings with institutional investors who attended the conference. ANNUAL REPORT 2011

18 Ingrained Strength Organisation & Stewardship 18 Board of Directors & Secretary 20 Profile of Directors 28 Group Organisation Chart 30 Profile of Senior Management

19 Through perseverance, dedication and hardwork, we emerge with strength even under the most challenging circumstances. Every sector is a facet that illuminates our focus on excellence.

20 18 left to right Y. Bhg. Tan Sri Dato Ir. (Dr) Wan Abdul Rahman Bin Wan Yaacob Y. Bhg. Tan Sri Dato Tan Boon Krishnan Board of Directors & SECRETARY left to right top: Y. Bhg. Datuk Yahya Bin Ya acob Y. Bhg. Tan Sri Abdul Halim Bin Ali Y. Bhg. Datuk Oh Chong Peng Y. Bhg. Datuk Hj Hasni Bin Harun bottom: Y. Bhg. Datuk Lee Teck Yuen Y. Bhg. Dato David Frederick Wilson Y. Bhg. Dato Goh Chye Koon Jeremie Ting Keng Fui, Secretary IJM CORPORATION BERHAD

21 19 left to right Y. Bhg. Dato Teh Kean Ming Tan Gim Foo ANNUAL REPORT 2011

22 20 Profile of Directors Y. BHG. TAN SRI DATO WAN ABDUL RAHMAN, BORN IN JUNE 1941, JOINED THE BOARD ON 1 JULY HE WAS APPOINTED THE CHAIRMAN OF IJM CORPORATION BERHAD ON 28 FEBRUARY Y. Bhg. Tan Sri Dato Ir. (Dr) Wan Abdul Rahman Bin Wan Yaacob PSM, SPMT, DPMT, JSM, AMN D.Eng.(h.c.) B ham, FASc, FIEM, FICE, FIHT, FCIOB, P.Eng., C.Eng. Independent Non-Executive Chairman Nomination & Remuneration Committee Audit Committee He obtained a Diploma in Civil Engineering from the Technical College, Kuala Lumpur in 1963, Diploma in Civil & Structural from Brighton College of Technology, United Kingdom in 1965, and attended the Advanced Management Programme of Harvard Business School, Boston, Massachusetts, USA in He was conferred a Honorary Doctor of Engineering by University of Birmingham, United Kingdom in He was with the Ministry of Works for 32 years, having served the last six (6) years as the Director General of the Public Works Department before his retirement in He is a Council member of The Road Engineering Association of Asia & Australia (REAAA), Past President of The Chartered Institution of Highways and Transportation (Malaysia Branch) and The Road Engineering Association of Malaysia (REAM). He is at present the Vice-President of the Kuala Lumpur Lawn Tennis Association and Malay Cricket Association. His directorships in other public companies include Lingkaran Trans Kota Holdings Berhad (Chairman), Lysaght Galvanized Steel Berhad (Chairman), Bank of America Malaysia Berhad, Malaysian Industrial Development Finance Berhad, NCB Holdings Berhad, MMC Corporation Berhad and Northport (Malaysia) Berhad (Chairman). IJM CORPORATION BERHAD

23 21 Y. BHG. TAN SRI DATO TAN, BORN IN DECEMBER 1952, WAS APPOINTED EXECUTIVE DEPUTY CHAIRMAN ON 1 JANUARY HE JOINED IJM CORPORATION BERHAD ( IJM ) AS FINANCIAL CONTROLLER IN 1983 AND THEN THE BOARD AS AN ALTERNATE DIRECTOR ON 12 JUNE 1984, DIRECTOR ON 10 APRIL 1990 AND DEPUTY MANAGING DIRECTOR ON 1 NOVEMBER HE WAS APPOINTED GROUP MANAGING DIRECTOR ON 1 JANUARY HE WAS REDESIGNATED CHIEF EXECUTIVE OFFICER & MANAGING DIRECTOR ( CEO&MD ) ON 26 FEBRUARY 2004, AND STEPPED DOWN AS THE CEO&MD ON 31 DECEMBER Y. Bhg. Tan Sri Dato Tan Boon Krishnan PSM, DSPN, SMS B.Econs(Hons), CPA(M), MBA Executive Deputy Chairman Executive Committee He qualified as a Certified Public Accountant in 1978 after graduating with a Bachelor of Economics (Honours) degree from University of Malaya in 1975, and holds a Master s degree in Business Administration from Golden Gate University, San Francisco, USA. Prior to joining IJM, he was with Kumpulan Perangsang Selangor Berhad for seven (7) years, his last position was Group Financial Controller. His directorships in other public companies include IJM Plantations Berhad, IJM Land Berhad (Chairman), Malaysian South-South Corporation Berhad and Grupo Concesionario del Oeste S.A., Argentina. He is a member of the Board of Governors of Malaysia Property Incorporated (MPI). He also serves as a Member of the Malaysian Accounting Standards Board as well as the Financial Reporting Foundation, and a Trustee of Perdana Leadership Foundation. He is actively involved in the promotion of Malaysia India business ties and is currently the President of the Malaysia-India Business Council (MIBC) and Chairman of the Malaysia India CEO Forum. For his contribution to the industry, he was awarded The Prominent Player Award 2008 by the Construction Industry Development Board Malaysia (CIDB). ANNUAL REPORT 2011

24 22 Profile of Directors (cont d) Y. BHG. DATO TEH, BORN IN APRIL 1955, WAS APPOINTED CHIEF EXECUTIVE OFFICER & MANAGING DIRECTOR ON 1 JANUARY HE WAS THE DEPUTY CHIEF EXECUTIVE OFFICER & DEPUTY MANAGING DIRECTOR FROM 1 JULY 2008 TO 31 DECEMBER 2010, AND THE ALTERNATE DIRECTOR TO DATO GOH CHYE KEAT FROM 1 SEPTEMBER 2005 TO 16 AUGUST 2006 AND THE ALTERNATE DIRECTOR TO DATO GOH CHYE KOON FROM 16 AUGUST 2006 TO 30 JUNE Y. Bhg. Dato Teh Kean Ming DSPN, PKT B.E (Civil), P.Eng., MIEM Chief Executive Officer & Managing Director Executive Committee Securities & Options Committee He graduated with a Bachelor of Engineering degree from University of New South Wales, Australia in He was a Resident Civil & Structural Engineer of Dayabumi Phase 3 Project ( ) and Menara Maybank ( ) and Area Engineer of Antah Biwater J.V. Sdn Bhd ( ) prior to joining IJM Construction Sdn Bhd as Project Manager ( ), Senior Manager (Project) ( ) and Project Director ( ). He was the Group General Manager of IJM Corporation Berhad ( IJM ) from 1 April 2001 to 31 December He was also the head of the Property Division of IJM from 2001 to 2008 and the Managing Director of IJM Properties Sdn Bhd from 1 January 2005 to 10 June His directorships in other public companies include Metech Group Berhad, IJM Land Berhad, IJM Plantations Berhad, ERMS Berhad and Road Builder (M) Holdings Bhd. IJM CORPORATION BERHAD

25 23 MR TAN, BORN IN JUNE 1958, WAS APPOINTED DEPUTY CHIEF EXECUTIVE OFFICER & DEPUTY MANAGING DIRECTOR ON 1 JANUARY HE WAS THE ALTERNATE DIRECTOR TO MR SOO HENG CHIN FROM 1 SEPTEMBER 2005 TO 30 JANUARY 2010 AND THE ALTERNATE DIRECTOR TO DATO GOH CHYE KOON FROM 30 JANUARY 2010 TO 31 DECEMBER HE IS ALSO THE MANAGING DIRECTOR OF IJM CONSTRUCTION SDN BHD ( IJMC ) AND HEADS THE CONSTRUCTION DIVISION OF THE GROUP. Tan Gim Foo B. Eng. (Civil) (Hons), P.Eng., MIEM, MBA Deputy Chief Executive Officer & Deputy Managing Director Executive Committee He graduated with a Bachelor of Engineering (1st Class Honours) degree from University Malaya in 1983, and holds a Master s degree in Business Administration from Charles Sturt University, New South Wales, Australia. He started out as a Site Engineer of Mudajaya Construction Sdn Bhd ( ) prior to joining IJM Corporation Berhad as Planning & Design Engineer ( ). He was Project Manager ( ), Senior Manager ( ) and Project Director ( ). He was the Executive Director of IJMC from 1 January 2005 to 30 January ANNUAL REPORT 2011

26 24 Profile of Directors (cont d) Y. Bhg. Datuk Yahya, born in January 1944, was appointed Director on 31 March He graduated with a Bachelor of Arts (Honours) degree and Diploma in Public Administration from University of Malaya in 1967 and 1970 respectively, and obtained a Master s degree in Business Management from the Asian Institute of Management in He was in the Malaysian Administrative and Diplomatic service for more than 32 years, having served the last five (5) years as the Secretary General of the Ministry of Works before his retirement in His other postings include Secretary General of the Ministry of Information ( ), Secretary of the Contracts Division, Ministry of Finance ( ), Deputy Director of the Implementation & Coordination Unit, Prime Minister s Department ( ), and Deputy Secretary of the Finance Division, Ministry of Finance ( ). His directorships in other public companies include Emas Kiara Industries Berhad, LBI Capital Berhad, UDA Holdings Berhad, Pelaburan Johor Berhad and Damansara Realty Berhad. Y. Bhg. Datuk Yahya Bin Ya acob PJN, DIMP, JSM, KMN, SMP, PBS B.A. (Hons), D.P.A. (Malaya), M.B.M. (Philippines) Senior Independent Non-Executive Director Nomination & Remuneration Committee Audit Committee Securities and Options Committee Y. Bhg. Tan Sri Abdul Halim Bin Ali PMN, PJN, SPMS, SIMP, DGSM, DHMS, DSDK, JSM, KMN BA (Hons), University of Malaya Independent Non-Executive Director Audit Committee Y. Bhg. Tan Sri Abdul Halim, born in July 1943, was appointed Director on 25 April He graduated with a Bachelor of Arts (Honours) degree from University of Malaya in He joined the Ministry of Foreign Affairs and served in the Malaysian Diplomatic Service from 1966 to During this period, he served in several diplomatic missions overseas, including ambassadorial appointments in Vietnam and Austria. He was appointed the Chief Secretary to the Government of Malaysia in 1998 and retired in After his retirement, he was made the Chairman of the Employees Provident Fund Board until January His directorships in other public companies include Malaysia Building Society Berhad (Chairman), Malakoff Corporation Berhad (Chairman), Minority Shareholders Watchdog Group (Chairman) and ESSO Malaysia Berhad. IJM CORPORATION BERHAD

27 25 Y. Bhg. Datuk Oh, born in July 1944, was appointed Director on 12 April He undertook his accountancy training in London and qualified as a Chartered Accountant in 1969 and is a Fellow of the Institute of Chartered Accountants of England and Wales. He is also a member of the Malaysian Institute of Certified Public Accountants (MICPA) and the Malaysian Institute of Accountants. He joined Coopers & Lybrand in London in 1969 and in Malaysia in He was a senior partner of Coopers and Lybrand (now known as PricewaterhouseCoopers), Malaysia from 1974 until his retirement in He was a Government appointed Committee Member of the Kuala Lumpur Stock Exchange from 1990 to 1996, a past President ( ) and Council Member ( ) of the MICPA, and also a member of the Listing Committee of Bursa Malaysia Berhad from 2008 to May His directorships in other public companies include Alliance Financial Group Berhad (Chairman), British American Tobacco (Malaysia) Berhad, Dialog Group Berhad, IJM Plantations Berhad, Ingenious Growth Berhad, Kumpulan Europlus Berhad and Malayan Flour Mills Berhad. He is also a Trustee of UTAR Education Foundation; and a Government appointed Member of the Labuan Financial Services Authority. Y. Bhg. Datuk Oh Chong Peng PJN, JSM FCA Independent Non-Executive Director Nomination & Remuneration Committee Audit Committee Y. Bhg. Datuk Hj Hasni Bin Harun PJN, AMN, PJC B. Accs (Hons), CA, MBA Non-Executive Director Y. Bhg. Datuk Hj Hasni, born in June 1957, was appointed Director on 21 April 2008 and is a representative of Zelan Berhad ( Zelan ). He first joined the Board on 9 May 2007 as an Alternate Director. He graduated with a Bachelor of Accounting (Honours) degree from the University of Malaya in 1979, and holds a Master s degree in Business Administration from United States International University, San Diego, California, USA. He is also a member of the Malaysian Institute of Accountants. He held several senior positions in the Accountant General s Office from 1980 to He was the Senior General Manager of the Investment Department at the Employees Provident Fund Board from March 1994 to March 2001, and the Managing Director of RHB Asset Management Sdn Bhd from April 2001 until April He then joined DRB-Hicom Berhad as Group Chief Financial Officer until December 2006 and joined MMC Corporation Berhad ( MMC ) as the Chief Operating Officer in January 2007 until February In March 2008, he was appointed as the Chief Executive Officer, Malaysia prior to his present appointment as the Group Managing Director in May His directorships in other public companies include Aliran Ihsan Resources Berhad, MMC, Zelan, Johor Port Berhad, Malakoff Corporation Berhad and MMC Engineering Group Berhad. ANNUAL REPORT 2011

28 26 Profile of Directors (cont d) Y. Bhg. Datuk Lee, born in August 1956, was appointed Director on 30 May He graduated with a Bachelor of Science (Honours) degree in Civil Engineering and Business Administration from University of Leeds, United Kingdom in His directorships in other public companies include Road Builder (M) Holdings Bhd, IJM Land Berhad, Malaysian South-South Corporation Berhad (Executive Director) and Asean Business Forum. He is also currently the President of Malaysian Water Ski Federation, Honorary Secretary of Malaysian South-South Association and the Honorary Consul of the Republic of Colombia. Y. Bhg. Datuk Lee Teck Yuen PJN BSc.(Hons) Civil Eng. & Bus. Adm. Non-Executive Director Nomination & Remuneration Committee Y. Bhg. Dato David Frederick Wilson DIMP MA (Mech.Sc), BA (Mech.Sc) Non-Executive Director Securities & Options Committee Y. Bhg. Dato Wilson, a British citizen, born in March 1945, was appointed Director on 30 May He holds a Master of Arts degree in Mechanical Sciences from Cambridge University, United Kingdom. He is a Fellow of the Institution of Civil Engineers, United Kingdom and the Institution of Highways and Transportation, United Kingdom. He worked on various infrastructure and development projects in United Kingdom, Africa, Central America, the Caribbean and the Middle East before coming to Malaysia in 1980 as the Chief Resident Engineer for the construction of the Kuala Lumpur-Seremban Expressway and the implementation of the first highway toll systems in Malaysia. In 1986, he joined United Engineers (Malaysia) Berhad as General Manager - Technical Services and was Managing Director of Kinta Kellas plc from 1990 to 1994 during which time he was responsible for the management of the construction of the North-South Expressway. Subsequent appointments included Managing Director of Renong Overseas Corporation Sdn Bhd ( ), Managing Director of Crest Petroleum Berhad ( ) and President of the Construction and Engineering Division of the Renong Group ( ). In 2002, he moved to Road Builder (M) Holdings Bhd initially as Non-Executive Director and later as Executive Director responsible for construction operations in India. IJM CORPORATION BERHAD

29 27 Y. Bhg. Dato Goh, born in June 1949, is a Non-Executive Director since 30 June He graduated with a Bachelor of Engineering (Honours) degree from University of Malaya in 1973, and served as an engineer in the Ministry of Works for eleven (11) years and was its Superintending Engineer prior to joining IJM Corporation Berhad as Senior Engineer in He was promoted as General Manager (Central Region) in 1986 and was made Alternate Director on 25 July 1995 before assuming the position of Deputy Group Managing Director on 1 January He was redesignated Deputy Chief Executive Officer & Deputy Managing Director in 2004, and upon his retirement, he remained as Executive Director for a year till 29 June 2009 to oversee the overseas construction activities. He was a member of the Construction Consultative Panel of the Malaysia Productivity Corporation (formerly known as National Productivity Corporation) ( MPC ) and also a member of the Technical Resource Group on Human Resource of the MPC (2003-Jan 2010). He was the Chairman of the Building Industry Presidents Council (June 2007-June 2008) and President of the Master Builders Association Malaysia for session 2004/2006, and has served as its Deputy President, Vice President and Deputy Secretary General. He was also a member of the Construction Industry Development Board, Malaysia ( ) and Presidential Consultative Council of the Board of Engineers, Malaysia ( ). He is presently an Advisory Peer Group (APG) member of the School of Science and Technology (SST), Wawasan Open University (March 2010). He is also a Director of Kumpulan Europlus Berhad. Y. Bhg. Dato Goh Chye Koon KMN, DSPN, JMN B.Eng.(Civil)(Hons), MIEM, P.Eng. Non-Executive Director Note: 1. There are no family relationship between the Directors and/or major shareholders of the Company. 2. All Directors are Malaysians except for Dato David Frederick Wilson who is a British national. 3. Save for Tan Sri Dato Ir. (Dr) Wan Abdul Rahman Bin Wan Yaacob, Tan Sri Dato Tan Boon Krishnan, Dato Teh Kean Ming, Datuk Hj Hasni bin Harun, Datuk Lee Teck Yuen, and Dato Goh Chye Koon, who have deemed interest in certain related party transactions as disclosed in Note 53 to the financial statements, none of the Directors has any financial interest in any business arrangement involving the Group. 4. All Directors maintain a clean record with regard to convictions for offences. ANNUAL REPORT 2011

30 28 Group Organisation Chart BOARD OF DIRECTORS CEO & Managing Director Dato Teh Kean Ming DIVISIONS Executive Committee Audit Committee Risk Management Committee Cyrus Eruch Daruwalla Internal Audit Lyndon Alfred Felix Tan Gim Foo Dato Soam Heng Choon Khor Kiem Teoh Nomination & Remuneration Committee Securities & Options Committee Joseph Tek Choon Yee Dato Ho Phea Keat James Wong Tet Foh Company Secretary Jeremie Ting Keng Fui Construction Tan Gim Foo Property Dato Soam Heng Choon Industry Khor Kiem Teoh Plantation Joseph Tek Choon Yee Infrastructure Ports Tolls Dato Ho Phea Keat James Wong Tet Foh International Ventures Pook Fong Fee India & Pakistan Tan Kiam Choon Middle East Tan Peng Kok Vietnam Adam Eleod Argentina IJM CORPORATION BERHAD

31 29 Deputy CEO & Deputy Managing Director Tan Gim Foo GROUP SUPPORT SERVICES Cyrus Eruch Daruwalla James Ponniah Joseph Jeremie Ting Keng Fui Lee Chun Fai Agnes Choon Mohd Kamal bin Harun Lyndon Alfred Felix Ng Yoke Kian Ahmad Nazmi bin Mohamed Ali S. Ramesh a/l V. Subramaniam Shane Guha Thakurta Sheela Kasivisvanathan Accounts & Finance Cyrus Eruch Daruwalla (CFO) Lee Chun Fai (Deputy CFO) Legal James Ponniah Joseph Corporate Services & Administration Jeremie Ting Keng Fui Business Development & New Ventures Mohd Kamal bin Harun Corporate Services Ng Yoke Kian Administration Information Systems Quality, Health, Safety & Environment Human Resources Agnes Choon Investor Relations Shane Guha Thakurta Corporate Communications Sheela Kasivisvanathan Quality System S. Ramesh a/l V. Subramaniam Health, Safety & Environment Ahmad Nazmi bin Mohamed Ali ANNUAL REPORT 2011

32 30 Profile of Senior Management Khor Kiem Teoh Dato Soam Heng Choon Dato Ho Phea Keat Khor Kiem Teoh B.Civil Engineering Chief Executive Officer & Managing Director (Industrial Concrete Products Sdn Bhd) Mr. Khor, born in August 1958, is the Chief Executive Officer & Managing Director of Industrial Concrete Products Sdn Bhd ( ICP ) since 5 November He graduated from Auburn University, Alabama, USA with a Bachelor of Science degree majoring in Civil Engineering in 1981 Upon graduation, he joined Jurutera Konsultant (SEA) Sdn Bhd, an engineering consultancy firm as an engineer. He was involved in the design of North-South Expressway. He joined ICP in 1984 as a Sales Engineer and was promoted to Sales Manager in He was Deputy General Manager in 2002 and then General Manager in On 17 August 2004, he was appointed as Chief Operating Officer and as Alternate Director to Mr Lim Yong Keat. He resigned as Alternate Director to Mr Lim Yong Keat on 21 September He was appointed as Executive Director of ICP on 16 August Y. Bhg. Dato Soam Heng Choon DIMP B.Sc. (Civil Eng)(Hons), P.Eng, MIEM Chief Executive Officer & Managing Director (IJM Land Berhad) Dato Soam, born in August 1959, was redesignated as the Chief Executive Officer & Managing Director of IJM Land Berhad with effect from 1 February Prior to that, he was the Company s Managing Director since 2 October He is currently also the Managing Director of RB Land Sdn Bhd and IJM Properties Sdn Bhd. He graduated from the University of Strathclyde, United Kingdom with a Bachelor of Science (1st Class Honours) in Civil Engineering. He was with the Ministry of Works prior to joining Road Builder (M) Holdings Bhd Group in He is a Professional Engineer and a member of the Institution of Engineers, Malaysia. He is the Vice President of Real Estate and Housing Developers Association (REHDA) Malaysia and the Immediate Past Chairman of the REHDA, Negeri Sembilan branch. Y. Bhg. Dato Ho Phea Keat DIMP B.Tech.(Civil), P.Eng., MIEM Managing Director (Port Division) Dato Ho, born in March 1955, was appointed the Managing Director of Kuantan Port Consortium Sdn Bhd ( KPC ) on 1 September He graduated with a Bachelor of Technology (1st Class) degree in Civil Engineering from the Indian Institute of Technology, Bombay, India in He is a qualified Professional Engineer and is also a corporate member of the Institution of Engineers, Malaysia. He also holds an advanced certificate specialising in Port and Harbour Engineering from the Port & Harbour Research Institute, Japan. In 1983, he joined Kuantan Port Authority as a Civil Engineer and optionally retired from the Government Service as a Senior Civil Engineer in He was Head of the Planning, Research & Development Department of KPC in 1998 and promoted to the position of General Manager of Infrastructure, Research & Development, a position he held for seven (7) years, where he was also responsible for the full spectrum of the Civil Engineering and Maritime Infrastructure works of Kuantan Port. He was promoted as the Deputy Managing Director in September IJM CORPORATION BERHAD

33 31 Joseph Tek Choon Yee Velayuthan A/L Tan Kim Song Joseph Tek Choon Yee B. Sc. (Hons), MPhil. (Cantab) Chief Executive Officer & Managing Director (IJM Plantations Berhad) Mr. Joseph Tek, born in January 1966, was appointed the Chief Executive Officer & Managing Director ( CEO&MD ) of IJM Plantations Berhad ( IJMP ) on 23 May He graduated with a Bachelor of Science degree with First Class Honours from Universiti Kebangsaan Malaysia. He was a Commonwealth ODASS-Sime Darby scholar and obtained his Master s in Philosophy (Plant Breeding) from Cambridge University, England. He also attended the ASEAN Senior Management Development Programme organised by Harvard Business School Alumni Club of Malaysia. He joined IJMP in September 2004 to head the research, training and development activities of the Group, and was appointed an Alternate Director on 22 May 2008 and Executive Director on 19 October 2008 besides being the General Manager - Plantations (Sabah). He was then redesignated to the position of Chief Operating Officer & Executive Director on 18 May 2009, prior to his appointment as CEO&MD of IJMP. Prior to joining IJMP in 2004, he was with Sime Darby Plantations Sdn Bhd as Plant Breeder in Ebor Research ( ), R&D Manager ( ) and later Manager-Agritech Business ( ) with Sime Aerogreen Sdn Bhd and Sime Gardentech Sdn Bhd. His last position was Head of R&D with the Malaysian Palm Oil Association (MPOA) ( ). He is currently a member of the Programme Advisory Committee (PAC) of the Malaysian Palm Oil Board (MPOB) ( ) and a Council Member of the Malaysian Estate Owners Association (MEOA) since He was also a Council Member of the Malaysian Oil Scientists and Technologists Association (MOSTA) ( ), a member of the Criteria Working Group for the Roundtable on Sustainable Palm Oil (RSPO) ( ) and Vice-Chairman of the MPOA Environment Working Committee for Velayuthan A/L Tan Kim Song M.MIN, D.DIV (India & USA) Chief Executive Officer (IJM Plantations Berhad - Indonesia) Mr. Vela Tan, born in May 1954, was appointed the Chief Executive Officer of PT Primabahagia Permai on 1 June 2010, and heads the Indonesian operations of IJM Plantations Berhad ( IJMP ). He completed a Diploma in Management from the Malaysian Institute of Management in He was with Multi-Purpose Holdings Berhad for five (5) years before joining IJM Corporation Berhad ( IJM ) in He was appointed Group General Manager of IJMP in 1994 before being appointed Executive Director in 1997 and Managing Director in He was redesignated Chief Executive Officer & Managing Director in February 2004 until his retirement in May He also served as Group Executive Director of IJM from May 2001 to May He was conferred with an Honorary fellowship of the Malaysian Oil Scientists & Technologists Association (MOSTA) in June 2010 and is a Council Member of the Malaysian Estate Owners Association (MEOA) for term 2010/2011. He was also a Council Member of Malaysian Palm Oil Association (MPOA) and alternate Board Member on the Malaysian Palm Oil Board (MPOB). He is the President of the Sabah Rugby Union since 2002 and Founding President of Sandakan Rugby Club. ANNUAL REPORT 2011

34 32 Profile of Senior Management (cont d) Tong Wai Yong James Wong Tet Foh Neoh Soon Hiong Tong Wai Yong B.Eng. (Civil Eng)(Hons), P.Eng., FIEM Executive Director (Road Builder (M) Sdn Bhd) Mr. Tong, born in April 1958, has been the Executive Director of Road Builder (M) Sdn Bhd ( RBM ) since 20 November He is also the Operations Director of IJM Construction Sdn Bhd. In addition, he heads the Construction Services at Head Office overseeing Procurement & Store, Plant & Workshop, Project Monitoring, Quality Management System and Health, Safety & Environmental Management System departments. He graduated with a Bachelor of Engineering (Honours) degree from University of Malaya in Civil Engineering. He started his career as a Project Engineer with the Ministry of Works ( ) and subsequently worked as the Site Agent for Syarikat Pembinaan Raya Sdn Bhd ( ). He was the Chief Operating Officer of Pati Sdn Bhd ( ) prior to joining RBM as the Director for Special Projects in He is a Fellow Member of the Institution of Engineers, Malaysia and a Registered Professional Engineer. Ir. James Wong Tet Foh B.Sc. (Civil Eng) (Hons), M.Sc., P.Eng. Head of Toll Division Ir. James Wong, born in April 1961, was appointed Head of Toll Division on 21 July He graduated in 1984 with a Bachelor of Science (1st Class Honours) in Civil Engineering and a Master of Science degree in Concrete Structures in 1985 from Imperial College of Science, Technology & Medicine, United Kingdom. He attained his Professional Engineer registration with the Board of Engineers Malaysia in 1989 after having spent the first five years of his career with a forensic engineering consultancy firm specialising in distressed buildings or infrastructure works covering the field of geotechnical, structural and material investigations. He joined the UEM Group of Companies ( UEM ) in 1989 as Senior Project Engineer and served for 21 years in various capacities, that included as Chief Operating Officer for UE Construction Sdn Bhd ( ) and Director of International Projects for UEM Builders Berhad ( ) covering India, Middle East, Indonesia and Singapore. At UEM, he was directly involved with notable projects such as the North South Interurban Tolled Expressways, Putra KL LRT System II, Ipoh-Rawang Electrified Double Track Project, College of Technology Qatar and major expressways in India. In 2009, he moved to Lafarge Concrete (M) Sdn Bhd as Vice President of Marketing and Strategy (Asia). He joined IJM Construction Sdn Bhd as Business Development Director in January 2010 and was redesignated as Business Development Director of IJM Corporation Berhad in February 2011, prior to his appointment as Head of Toll Division. Neoh Soon Hiong MBA Head of Toll Division ( ) Mr. Neoh, born in July 1956, has retired on 21 July 2011 as Head of Toll Division after serving more than 13 years in the Toll Division. He is now assigned to procure and lead a major highway project in Malaysia. He graduated from Paris Graduate School of Management, France with a European Masters Degree in Business Administration. He worked for the Public Works Department for more than 10 years and subsequently joined PLUS Expressways Berhad as an engineer of its Maintenance Management Department in In 1995, he was transferred to Metramac Corporation Sdn Bhd and served as an engineer until he joined Besraya Sdn Bhd ( BSB ) as Project Manager in His subsequent appointments included Head of Operations of BSB ( ), General Manager of BSB and New Pantai Expressway Sdn Bhd ( NPE ) ( ), Executive Director of Toll Division of BSB and NPE ( ), Managing Director of NPE and BSB ( ), and CEO of Lebuhraya Kajang-Seremban Sdn Bhd ( ). IJM CORPORATION BERHAD

35 33 Jeremie Ting Keng Fui Loy Boon Chen Cyrus Eruch Daruwalla Jeremie Ting Keng Fui FCIS, MBA Company Secretary Mr. Jeremie Ting, born in September 1957, joined IJM Corporation Berhad in 1982 and was appointed as Company Secretary on 1 October He is also the Company Secretary of IJM Plantations Berhad and IJM Land Berhad, and heads the Corporate Services, Administration, and Information Systems Departments. He completed the examinations of The Institute of Chartered Secretaries and Administrators (ICSA) in 1981, after obtaining a Diploma in Foundations of Administration from Chelmer Institute of Higher Education, Chelmsford, Essex, England in 1979, and holds a Master s degree in Business Administration from Golden Gate University, San Francisco, USA. He was the President of the Malaysian Institute of Chartered Secretaries & Administrators (MAICSA) for He is presently a Council Member and has served as Council Member over 16 years since He is also a member of the Governance Committee, Technical & Professional Practice Committee and National Disciplinary Tribunal of MAICSA and is also MAICSA Adviser for Securities Commission (SC)/ Bursa Affairs. He was a member of the Corporate Governance Working Group of the SC and a member of the Committee of Adjudicators of the Malaysian Corporate Governance (MCG) Index 2010 of the Minority Shareholder Watchdog Group (MSWG). He was adjudged the winner of the ROC-MAICSA Company Secretary Award 2000 under the Listed Company Category. Loy Boon Chen MBA, CPA(M) IJM Representative in Kumpulan Europlus Berhad and Talam Corporation Berhad Mr. Loy, born in October 1951, is an Executive Director of both Kumpulan Europlus Berhad and Talam Corporation Berhad. He is also an Independent Non-Executive Director of Guangdong Provincial Expressway Development Co. Limited, a company listed on the Shenzhen Stock Exchange, China. He qualified as a Certified Public Accountant in 1978 and holds a Master s degree in Business Administration from Golden Gate University, San Francisco, USA. He served an international accounting firm for seven (7) years prior to joining Chong Kok Lin & Sons Berhad in 1980 as Accountant cum Secretary for a year. In 1981, he joined Mudajaya Construction Sdn Bhd as Chief Accountant before being appointed Group Financial Controller of IJM Corporation Berhad ( IJM ) in He was made the Finance Director of IJM from 1998 and was the head of the Finance & Accounts Department before his retirement in He was also the Chairman of IJM Group Risk Management Committee since its inception in 2002 until He was a member of the Accounting Standards Sub-Committee of the Federation of Public Listed Companies Berhad ( ). Cyrus Eruch Daruwalla ACCA, B. Commerce Chief Financial Officer Mr. Cyrus Daruwalla, born in January 1962, joined IJM Corporation Berhad in September 2006 as Chief Financial Officer, heading the Accounts & Finance Department for the overall Group. He is a Director of Road Builder (M) Holdings Bhd and is also an Executive Director for several of the Group s overseas entities. He graduated with a Bachelor of Commerce (Honours) degree from University of Bombay in 1982, and was admitted as an associate member of the Association of Chartered Certified Accountants, United Kingdom in Upon graduation he completed his audit articleship with Ernst & Young, London, UK prior to joining Addmoss Taylor & Partners, London, before being appointed as Senior Accountant for Portlands of Blackheath Ltd., UK in In Malaysia, he worked as Head of Professional Programmes for Emile Woolf Far East Sdn Bhd, before being appointed as Group Financial Controller for the Sri America Group of Companies. In 1999, he joined PricewaterhouseCoopers, Malaysia as Manager before assuming the position of Executive Director in ANNUAL REPORT 2011

36 Emerging Capabilities Shareholder Summary of Information 36 Group Financial Highlights 37 Group Quarterly Performance 38 Statement of Value Added & Distribution 39 Information for Investors 41 Analysis of Shareholdings & Warrantholdings 49 Employees & Productivity

37 The ability to change and evolve over time has allowed us to spread our wings in a growing array of disciplines. We view challenges as opportunities for further growth.

38 36 Group Financial Highlights Operating Revenue RM million , ,882 5,305 5, Profit/(Loss) Before Taxation RM million , Earnings/(Losses) per Share (Basic) Sen FINANCIAL YEAR ENDED 31 MARCH OPERATING REVENUE (N1) RM 000 Construction 1,336,191 1,841,219 2,355,258 2,353,153 1,126,246 Property development 1,178,764 1,175, , , ,594 Industry 807, ,853 1,069, , ,600 Plantation 538, , , , ,816 Infrastructure 620, , , ,019 63,188 Investment & Others 976 1,990 3,854 39,148 33,144 4,481,869 4,882,429 5,305,306 5,088,045 2,740,588 PROFIT/(LOSS) BEFORE TAXATION RM 000 Construction (79,233) 30,890 40, , ,425 Property development 289, , , ,043 77,177 Industry 109, , , ,858 73,740 Plantation 196, , , ,151 57,106 Infrastructure 127,503 95,882 26,492 88,603 (22,946) Investment & Others 33,129 (6,713) 4,929 (816,061) 13, , , ,670 (144,848) 318,929 NET PROFIT ATTRIBUTABLE TO OWNERS OF THE COMPANY RM , , ,212 (420,467) 194,336 ISSUED SHARE CAPITAL RM 000 1,351,115 1,327, , , ,327 SHAREHOLDERS FUNDS RM 000 5,047,137 5,129,221 4,770,150 4,628,250 2,602,922 TOTAL ASSETS RM ,579,858 12,558,295 11,726,163 11,148,413 6,038,809 EARNINGS/(LOSSES) PER SHARE (Basic) Sen * (35.31)* 27.13* GROSS DIVIDEND PER SHARE Sen NET ASSETS PER SHARE RM * 3.86* 3.26* RETURN ON TOTAL ASSETS % (3.77) 3.22 RETURN ON EQUITY % (9.08) 7.47 GEARING (Net Debt/Equity) % SHARE PRICE High RM Low RM Closing RM WARRANT PRICE 2005/2010 High RM Low RM Closing RM 1.54** WARRANT PRICE 2009/2014 High RM Low RM Closing RM N1 Including share of associate and joint venture s revenue * Adjusted for 2:5 Bonus Issue ** Warrants 2005/2010 ceased trading and expired on 5 August 2010 and 20 August 2010 respectively Net Assets per Share RM , Shareholders, Funds RM million ,603 5,129 4,770 4,628 Gearing % IJM CORPORATION BERHAD

39 Group Quarterly Performance 37 Operating Revenue RM million Q4 Q3 Q2 Q1 1, ,236 Q4 75 1,159 Profit/(Loss) Before Taxation RM million Q3 Q2 Q Earnings/(Losses) per Share (Basic) Sen Q4 Q3 Q2 Q First Second Third Fourth FINANCIAL YEAR ENDED 31 MARCH 2011 Quarter Quarter Quarter Quarter OPERATING REVENUE (N1) RM 000 Construction 306, , , ,223 Property development 379, , , ,980 Industry 201, , , ,090 Plantation 120, , , ,122 Infrastructure 149, , , ,591 Investment & Others ,158, ,067 1,097,715 1,236,329 PROFIT/(LOSS) BEFORE TAXATION RM 000 Construction 8,994 9,820 10,260 (108,307) Property development 84,661 44, ,823 49,838 Industry 29,126 26,154 28,071 26,146 Plantation 38,767 64,690 59,830 32,726 Infrastructure 15,432 48,004 16,843 47,224 Investment & Others 2,085 5,359 (1,731) 27, , , ,096 75,043 NET PROFIT ATTRIBUTABLE TO OWNERS OF THE COMPANY RM , , ,192 (20,195) ISSUED SHARE CAPITAL RM 000 1,336,971 1,350,979 1,351,032 1,351,115 SHAREHOLDERS FUNDS RM 000 4,943,068 5,102,329 5,157,340 5,047,137 TOTAL ASSETS RM ,400,408 12,457,241 12,545,300 12,579,858 EARNINGS/(LOSSES) PER SHARE (Basic) Sen (1.49) GROSS DIVIDEND PER SHARE Sen NET ASSETS PER SHARE RM RETURN ON TOTAL ASSETS (Annualised) % RETURN ON EQUITY (Annualised) % SHARE PRICE High RM Low RM Closing RM WARRANT PRICE 2005/2010 High RM * Low RM * Closing RM * WARRANT PRICE 2009/2014 High RM Low RM Closing RM N1 Including share of associate and joint venture s revenue * Ceased trading and expired on 5 August 2010 and 20 August 2010 respectively Net Assets per Share RM Q4 Q3 Q2 Q Q4 5, Shareholders, Funds RM million Q3 Q2 Q1 5,157 5,102 4,943 Return on Equity % Q4 Q3 Q2 Q ANNUAL REPORT 2011

40 38 Statement of Value Added & Distribution FINANCIAL YEAR ENDED 31 MARCH RM 000 RM 000 Value added : Revenue 3,720,717 4,013,530 Purchases of goods & services (2,496,466) (2,899,798) Value added by the Group 1,224,251 1,113,732 Share of profits of associates 46,844 19,676 Share of (losses)/profits of jointly controlled entities (26,226) 11,071 Total value added 1,244,869 1,144,479 Distribution : To employees - Salaries & other staff costs 226, ,415 To Governments - Taxation 197, ,860 To providers of capital - Dividends 181,261 35,199 - Finance costs 193, ,421 - Minority interest 158,046 90,584 Retained for future reinvestment & growth - Depreciation and amortisation 147, ,619 - Retained profits 140, ,381 Total distributed 1,244,869 1,144,479 Value added is a measure of wealth created. The above statement shows the Group s value added for 2011 and 2010 and its distribution by way of payments to employees, governments and capital providers, with the balance retained in the Group for future reinvestment and growth. Reconciliation Profit for the year 321, ,580 Add : Depreciation and amortisation 147, ,619 Finance costs 193, ,421 Staff costs 226, ,415 Taxation 197, ,860 Minority interest 158,046 90,584 Total value added 1,244,869 1,144,479 IJM CORPORATION BERHAD

41 Information for Investors 39 RM RM 3.50 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar IJM IJM Warrant B Price IJM Warrant C Price Based on volume weighted average share/warrant price & index FBM100 Source: Bloomberg FBM100 12,000 10,000 8,000 6,000 4,000 2,000 FBM100 12,000 IJM Corporation Berhad ( IJM ) Share & Warrant Prices vs FBM100 IJM s share price (stock code: 3336) increased marginally in the first half of the financial year mainly due to the absence of fresh catalysts following a strong share price performance the year before. Sentiment began to improve in October 2010 after the Government launched the Economic Transformation Programme, through which more details on plans for large scale projects were unveiled. The construction sector was thus expected to directly benefit from the initial phases of its implementation. IJM s share price increased 30% to close at RM6.41 as at 31 March 2011, from RM4.94 a year ago. IJM s Warrant C 2009/2014 price (stock code: 3336wc) mirrored a similar trend to that of its mother share, rising to RM2.48 as at 31 March 2011, an increase of 112% from RM1.17 a year ago and returning a gain of 892% over its issue price of RM0.25 in October IJM s Warrant B 2005/2010 (stock code: 3336wb) expired on 20 August 2010 following its cessation of trading on 5 August For the period 1 April 2010 to 4 August 2010, IJM s Warrant B price gained 13% from RM1.36 to RM1.54. On its last trading day, warrantholders stood to have gained 2980% since its issue price of RM0.05 in July ,000 8,000 IJM Land Berhad ( IJML ) Share & Warrant Prices vs FBM Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar ,000 4,000 2,000 IJML s share price (stock code: 5215) moderated in the first half of the financial year before rising to a peak of RM3.24 in December 2010 and ending at RM2.75 on 31 March For the year, the share price increased 15% from RM2.39. IJML s Warrant 2008/2013 price (stock code: 5215wa) followed a similar pattern to that of its mother share, rising from RM1.16 in April 2010 to RM1.43 in March 2011, an increase of 23%. IJM Land IJM Land Warrant Price FBM100 Based on volume weighted average share/warrant price & index Source: Bloomberg RM 3.50 FBM100 12, Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar ,000 8,000 6,000 4,000 2,000 IJM Plantations Berhad ( IJMP ) Share & Warrant Prices vs FBM100 IJMP s share price (stock code: 2216) started at RM2.57 in April 2010, traded in a narrow band throughout the first half of the financial year and rose to a peak of RM3.17 in January 2011 before closing at RM2.95 on 31 March 2011, thus representing a gain of 15% from a year ago. IJMP s Warrant (stock code: 2216wa) echoed a similar pattern to that of its mother share, rising from RM0.70 in April 2010 to RM0.85 in March 2011, representing a gain of 21%. IJM Plantation IJM Plantation Warrant Price FBM100 Based on volume weighted average share/warrant price & index Source: Bloomberg ANNUAL REPORT 2011

42 40 Information for Investors (cont d) IJM Commercial Papers/Medium Term Notes 2009/2016 (RM1 Billion) As a further endorsement to IJM s strong financial position, MARC has assessed and affirmed IJM s corporate debt as AA- with a short term rating of MARC-1 and a stable outlook in its latest annual review in December Details of the commercial papers and medium term notes are disclosed in Note 17 to the Financial Statements. FINANCIAL CALENDAR Financial Year End 31 March 2011 Announcement of Results 1st Quarter 25 August nd Quarter 23 November rd Quarter 23 February th Quarter 27 May 2011 Notice of Annual General Meeting 29 July 2011 Annual General Meeting 24 August 2011 INVESTOR SERVICE The Group maintains a dynamic website ( which provides detailed information on the Group s operations and latest developments. For further details, you may contact: For shareholder and company related matters, please contact: For financial performance or company development matters, please contact: Mr Jeremie Ting Mr Shane Guha Thakurta Company Secretary Investor Relations Manager Tel: Fax: Tel: Fax: jt@ijm.com shanethakurta@ijm.com IJM CORPORATION BERHAD

43 Analysis of Shareholdings & Warrantholdings 41 I. ANALYSIS OF SHAREHOLDINGS as at 30 June 2011 Authorised Share Capital : RM3,000,000,000 Issued & paid-up Capital : RM1,363,803,454* Class of Shares : Ordinary Shares of RM1.00 each Voting Rights On show of hands : 1 vote On a poll : 1 vote for each share held * inclusive of 16,000 shares bought-back by the Company and retained as treasury shares as at 30 June 2011 DISTRIBUTION OF SHAREHOLDINGS Number of Number Percentage of Range of Shareholdings Shareholders of Shares Issued Capital Less than , % 100-1,000 1, , % 1,001-10,000 4,817 15,412, % 10, ,000 (1) ,258, % 100,001 to less than 5% of issued shares ,546, % 5% and above of issued shares 3 337,759, % (1) excluding 16,000 treasury shares 7,840 1,363,787, % REGISTER OF SUBSTANTIAL SHAREHOLDERS Number of Shares Deemed Percentage of Direct Interests Issued Capital 1. Employees Provident Fund Board 204,769, % 2. Kumpulan Wang Persaraan (Diperbadankan) 84,659, % 3. Amanahraya Trustees Berhad - Skim Amanah Saham Bumiputera 100,000, % ANNUAL REPORT 2011

44 42 Analysis of Shareholdings & Warrantholdings (cont d) THIRTY LARGEST SHAREHOLDERS Number of Shares Percentage of Issued Capital 1. CITIGROUP NOMINEES (TEMPATAN) SDN BHD 160,012, % EMPLOYEES PROVIDENT FUND BOARD 2. AMANAHRAYA TRUSTEES BERHAD 100,000, % SKIM AMANAH SAHAM BUMIPUTERA 3. KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 77,747, % 4. HSBC NOMINEES (ASING) SDN BHD 66,557, % EXEMPT AN FOR JPMORGAN CHASE BANK, NATIONAL ASSOCIATION (U.S.A.) 5. EB NOMINEES (TEMPATAN) SENDIRIAN BERHAD 66,330, % PLEDGED SECURITIES ACCOUNT FOR ZELAN BERHAD (KLM) 6. CARTABAN NOMINEES (ASING) SDN BHD 35,400, % EXEMPT AN FOR STATE STREET BANK & TRUST COMPANY (WEST CLT OD67) 7. HSBC NOMINEES (ASING) SDN BHD 34,422, % EXEMPT AN FOR J.P. MORGAN BANK LUXEMBOURG S.A. 8. MALAYSIA NOMINEES (TEMPATAN) SENDIRIAN BERHAD 24,148, % GREAT EASTERN LIFE ASSURANCE (MALAYSIA) BERHAD (PAR 1) 9. AMANAHRAYA TRUSTEES BERHAD 19,631, % AMANAH SAHAM WAWASAN CARTABAN NOMINEES (ASING) SDN BHD 19,509, % GOVERNMENT OF SINGAPORE INVESTMENT CORPORATION PTE LTD FOR GOVERNMENT OF SINGAPORE (C) 11. HSBC NOMINEES (ASING) SDN BHD 18,762, % BBH AND CO BOSTON FOR VANGUARD EMERGING MARKETS STOCK INDEX FUND 12. VALUECAP SDN BHD 16,049, % 13. HSBC NOMINEES (ASING) SDN BHD 15,320, % EXEMPT AN FOR JPMORGAN CHASE BANK, NATIONAL ASSOCIATION (SAUDI ARABIA) 14. CITIGROUP NOMINEES (ASING) SDN BHD 15,041, % CBNY FOR DIMENSIONAL EMERGING MARKETS VALUE FUND 15. HSBC NOMINEES (ASING) SDN BHD 14,610, % EXEMPT AN FOR JPMORGAN CHASE BANK, NATIONAL ASSOCIATION (U.A.E.) 16. PERMODALAN NASIONAL BERHAD 13,905, % 17. HSBC NOMINEES (ASING) SDN BHD 13,059, % EXEMPT AN FOR JPMORGAN CHASE BANK, NATIONAL ASSOCIATION (NORGES BK LEND) 18. AMANAHRAYA TRUSTEES BERHAD 13,000, % AMANAH SAHAM MALAYSIA IJM CORPORATION BERHAD

45 43 THIRTY LARGEST SHAREHOLDERS (cont d) Number of Shares Percentage of Issued Capital 19. CITIGROUP NOMINEES (TEMPATAN) SDN BHD 12,990, % EXEMPT AN FOR AMERICAN INTERNATIONAL ASSURANCE BERHAD 20. CITIGROUP NOMINEES (TEMPATAN) SDN BHD 12,124, % EXEMPT AN FOR PRUDENTIAL FUND MANAGEMENT BERHAD 21. LEMBAGA TABUNG HAJI 11,055, % 22. CITIGROUP NOMINEES (TEMPATAN) SDN BHD 10,742, % EMPLOYEES PROVIDENT FUND BOARD (NOMURA) 23. HSBC NOMINEES (ASING) SDN BHD 10,420, % EXEMPT AN FOR JPMORGAN CHASE BANK, NATIONAL ASSOCIATION (BVI) 24. HSBC NOMINEES (ASING) SDN BHD 9,903, % EXEMPT AN FOR JPMORGAN CHASE BANK, NATIONAL ASSOCIATION (U.K.) 25. CITIGROUP NOMINEES (TEMPATAN) SDN BHD 9,781, % EMPLOYEES PROVIDENT FUND BOARD (PHEIM) 26. PERTUBUHAN KESELAMATAN SOSIAL 8,922, % 27. MINISTER OF FINANCE 8,533, % AKAUN JAMINAN PINJAMAN KERAJAAN PERSEKUTUAN 28. CARTABAN NOMINEES (ASING) SDN BHD 8,191, % STATE STREET LONDON FUND OD75 FOR ISHARES PUBLIC LIMITED COMPANY 29. HSBC NOMINEES (ASING) SDN BHD 8,138, % EXEMPT AN FOR BNP PARIBAS SECURITIES SERVICES 30. AMANAHRAYA TRUSTEES BERHAD 8,048, % PUBLIC ISLAMIC DIVIDEND FUND 842,359, % ANNUAL REPORT 2011

46 44 Analysis of Shareholdings & Warrantholdings (cont d) I I. ANALYSIS OF WARRANTHOLDINGS as at 30 June 2011 Warrants 2009/2014 : 117,188,938 outstanding DISTRIBUTION OF WARRANTHOLDINGS Percentage of Range of Warrantholdings Number of Number of Outstanding Warrantholders Warrants Warrants Less than , % 100-1,000 1, , % 1,001-10, ,890, % 10, , ,177, % 100,001 to less than 5% of issued warrants ,061, % 5% and above of issued warrants 3 22,368, % 3, ,188, % THIRTY LARGEST WARRANTHOLDERS Number of Warrants Percentage of Outstanding Warrants 1. CIMSEC NOMINEES (TEMPATAN) SDN BHD 8,682, % CIMB BANK FOR SONG KEE LING (MM0873) 2. DB (MALAYSIA) NOMINEE (ASING) SDN BHD 7,500, % EXEMPT AN FOR DEUTSCHE BANK AG SINGAPORE (PWM ASING) 3. RHB CAPITAL NOMINEES (TEMPATAN) SDN BHD 6,186, % PLEDGED SECURITIES ACCOUNT FOR SONG KEE LING 4. RHB CAPITAL NOMINEES (TEMPATAN) SDN BHD 4,000, % PLEDGED SECURITIES ACCOUNT FOR CHANG SI CHONG SEE FOCK (CEB) 5. GENERAL TECHNOLOGY SDN BHD 2,583, % 6. CIMSEC NOMINEES (TEMPATAN) SDN BHD 2,396, % CIMB FOR GENERAL TECHNOLOGY SDN. BHD. (PB) 7. HSBC NOMINEES (ASING) SDN BHD 2,289, % EXEMPT AN FOR BNP PARIBAS SECURITIES SERVICES 8. RHB NOMINEES (TEMPATAN) SDN BHD 2,145, % PLEDGED SECURITIES ACCOUNT FOR CHANG SI CHONG SEE FOCK 9. HDM NOMINEES (TEMPATAN) SDN BHD 2,131, % PLEDGED SECURITIES ACCOUNT FOR TAN CHIN HOE (M01) 10. AMANAHRAYA TRUSTEES BERHAD 1,923, % MIDF AMANAH STRATEGIC FUND 11. CIMSEC NOMINEES (ASING) SDN BHD 1,778, % EXEMPT AN FOR CIMB SECURITIES (SINGAPORE) PTE LTD (RETAIL CLIENTS) IJM CORPORATION BERHAD

47 45 THIRTY LARGEST WARRANTHOLDERS (cont d) Number of Warrants Percentage of Outstanding Warrants 12. UOBM NOMINEES (ASING) SDN BHD 1,752, % EXEMPT AN FOR SOCIETE GENERALE BANK & TRUST, SINGAPORE BRANCH(CUST ASSET) 13. AMANAHRAYA TRUSTEES BERHAD 1,684, % PUBLIC ENHANCED BOND FUND 14. CHOO YOKE KUEN 1,579, % 15. HDM NOMINEES (TEMPATAN) SDN BHD 1,522, % PLEDGED SECURITIES ACCOUNT FOR TAM MAY CHOW (M01) 16. CH NG BENG KIAN 1,501, % 17. TAN BOON KRISHNAN 1,424, % 18. RHB NOMINEES (TEMPATAN) SDN BHD 1,419, % PLEDGED SECURITIES ACCOUNT FOR CHOONG VIVIEN 19. GENERAL TECHNOLOGY SDN BHD 1,370, % 20. DB (MALAYSIA) NOMINEE (TEMPATAN) SENDIRIAN BERHAD 1,280, % MIDF AMANAH ASSET MANAGEMENT BERHAD FOR YAYASAN SARAWAK (JG281) 21. HSBC NOMINEES (ASING) SDN BHD 1,260, % EXEMPT AN FOR JPMORGAN CHASE BANK, NATIONAL ASSOCIATION (JAPAN) 22. OSK NOMINEES (TEMPATAN) SDN BERHAD 1,250, % KIM ENG SECURITIES PTE. LTD. FOR WONG YUE JEEN 23. A.A. ANTHONY NOMINEES (TEMPATAN) SDN BHD 1,202, % PLEDGED SECURITIES ACCOUNT FOR DANIEL LIM HWA YEW 24. DB (MALAYSIA) NOMINEE (TEMPATAN) SENDIRIAN BERHAD 1,124, % MIDF AMANAH ASSET MANAGEMENT BERHAD FOR INTERNATIONAL ISLAMIC UNIVERSITY RETIREMENT BENEFIT FUND (JF484) 25. AMANAHRAYA TRUSTEES BERHAD 1,030, % MIDF AMANAH GROWTH FUND 26. OSK NOMINEES (TEMPATAN) SDN BERHAD 1,030, % KIM ENG SECURITIES PTE. LTD. FOR LIM CHONG CHEE 27. MALAYSIA NOMINEES (TEMPATAN) SENDIRIAN BERHAD 1,000, % GREAT EASTERN LIFE ASSURANCE (MALAYSIA) BERHAD (NON PAR 1) 28. EMINENT ACE SDN BHD 1,000, % 29. HSBC NOMINEES (ASING) SDN BHD 988, % HSBC-FS FOR FULLERTON GLOBAL EQUITIES FUND (FULLERTON FUNDS) 30. HSBC NOMINEES (ASING) SDN BHD 976, % EXEMPT AN FOR JPMORGAN CHASE BANK, NATIONAL ASSOCIATION (NORGES BK LEND) 66,014, % ANNUAL REPORT 2011

48 46 Analysis of Shareholdings & Warrantholdings (cont d) I II. DIRECTORS SHAREHOLDINGS & WARRANTHOLDINGS DIRECTORS SHAREHOLDINGS IN IJM CORPORATION BERHAD as at 30 June 2011 Percentage of Number of Shares Issued Name of Directors Direct Deemed Capital Tan Sri Dato Ir. (Dr) Wan Abdul Rahman bin Wan Yaacob 70, % Tan Sri Dato Tan Boon Krishnan 2,449,180 1,045, % Dato Teh Kean Ming 84,000 91, % Tan Gim Foo Datuk Yahya bin Ya acob 70, % Tan Sri Abdul Halim bin Ali Datuk Oh Chong Peng Datuk Hj. Hasni bin Harun Datuk Lee Teck Yuen 1,240, , % Dato David Frederick Wilson Dato Goh Chye Koon 38, % Note:- 1 Through a family member DIRECTORS WARRANTHOLDINGS IN IJM CORPORATION BERHAD as at 30 June /2014 Percentage of Number of Warrants Outstanding Name of Directors Direct Deemed Warrants Tan Sri Dato Ir. (Dr) Wan Abdul Rahman bin Wan Yaacob 7, % Tan Sri Dato Tan Boon Krishnan 1,424, , % Dato Teh Kean Ming 39,300 39, % Tan Gim Foo Datuk Yahya bin Ya acob 7, % Tan Sri Abdul Halim bin Ali Datuk Oh Chong Peng Datuk Hj. Hasni bin Harun Datuk Lee Teck Yuen Dato David Frederick Wilson Dato Goh Chye Koon 15, % Note:- 1 Through a family member IJM CORPORATION BERHAD

49 47 I II. DIRECTORS SHAREHOLDINGS & WARRANTHOLDINGS (cont d) DIRECTORS SHAREHOLDINGS AND WARRANTHOLDINGS IN IJM PLANTATIONS BERHAD as at 30 June 2011 Percentage Percentage of Number of Shares of Issued Number of Warrants Outstanding Name of Directors Direct Deemed Capital Direct Deemed Warrants Tan Sri Dato Ir. (Dr) Wan Abdul Rahman bin Wan Yaacob 45, % 5, % Tan Sri Dato Tan Boon Krishnan 646, , % 70,060 51, % Dato Teh Kean Ming Tan Gim Foo Datuk Yahya bin Ya acob Tan Sri Abdul Halim bin Ali Datuk Oh Chong Peng 100, % 10, % Datuk Hj. Hasni bin Harun Datuk Lee Teck Yuen Dato David Frederick Wilson Dato Goh Chye Koon 517, % 73, % Note:- 1 Through a family member DIRECTORS SHAREHOLDINGS & WARRANTHOLDINGS IN IJM LAND BERHAD as at 30 June 2011 Percentage Percentage of Number of Shares of Issued Number of Warrants Outstanding Name of Directors Direct Deemed Capital Direct Deemed Warrants Tan Sri Dato Ir. (Dr) Wan Abdul Rahman bin Wan Yaacob 50, % 5, % Tan Sri Dato Tan Boon Krishnan 20, % 1,248, , % Dato Teh Kean Ming 147,000 5, % Tan Gim Foo 130, % Datuk Yahya bin Ya acob 5, % Tan Sri Abdul Halim bin Ali 10, % Datuk Oh Chong Peng Datuk Hj. Hasni bin Harun Datuk Lee Teck Yuen 11,064, % Dato David Frederick Wilson Dato Goh Chye Koon Note:- 1 Through a family member ANNUAL REPORT 2011

50 48 Analysis of Shareholdings & Warrantholdings (cont d) I V. SHARE BUY BACK SUMMARY for Financial Year Ended 31 March 2011 No. of Shares Purchased & Retained as Total Purchase Price Per Share (RM) Treasury Shares Consideration Highest Lowest Average RM 2011 Balance at the beginning of financial year Purchases during the financial year April 2010 May 2010 June ,000 47, July 2010 August 2010 September 2010 October 2010 November ,000 29, December 2010 January 2011 February 2011 March 2011 Balance at end of financial year 15,000 77, None of the treasury shares were resold or cancelled during the financial year. IJM CORPORATION BERHAD

51 Employees & Productivity 49 By Classification By Ethnic Composition 18% 17% 33% 34% 51% 49% Employees 49% 49% 23% 24% 8% 18% 8% 19% Management Executive Non-Executive Bumiputra Chinese Indian Others (including overseas) (a) Employees as at 31 March:- Employees by Classification - Management Executive 1,476 1,448 - Non-Executive 2,153 2,123 4,425 4,320 Employees by Ethnic Composition - Bumiputra 2,225 2,082 - Chinese 1,030 1,052 - Indian Others (including overseas) (b) Productivity:- (N1) 4,425 4,320 Revenue - per employee (in RM 000) per RM employment cost (in RM) PBT - per employee (in RM 000) per RM employment cost (in RM) Value added - per employee (in RM 000) per RM employment cost (in RM) (N1) Based on number of employees during the year. Per Employee (RM 000) Per RM Employment Cost (RM) Productivity Revenue Pre-tax profit Value added ANNUAL REPORT 2011

52 Delivering Results Business Review & Reports 52 Chairman s Statement 58 CEO s Review of Operations 84 Corporate Governance Statement 93 Audit Committee Report 96 Statement on Internal Control 102 Quality Report 105 Health, Safety and Environment Report

53 51 We deliver value beyond numbers in all our endeavours. Through the years, IJM has consistently progressed, evolving as a trusted name both locally and regionally.

54 52 ON BEHALF OF THE BOARD OF DIRECTORS OF IJM CORPORATION BERHAD, I AM PLEASED TO PRESENT ANOTHER YEAR OF RECORD EARNINGS PERFORMANCE BY THE GROUP - ACHIEVING A PRE-TAX PROFIT OF RM MILLION. Tan Sri Dato Ir (Dr) Wan Abdul Rahman bin Wan Yaacob Chairman

55 53 BUSINESS ENVIRONMENT In 2010, the global economy rebounded strongly to grow at 5%, as compared to a contraction of 0.6% in the previous year. Expansion was led by emerging economies, notably in Asia, where robust domestic demand and a strong recovery in trade made up for the slack from laggard developed economies that continued to be weighted down by the lingering effects of the 2008/09 financial crisis. Towards the second half of the year, strong growth in Asian economies and expansionary monetary policies adopted in the West began to lead to greater inflationary pressures, seen particularly in rising food and commodity prices, as well as greater capital inflows into emerging markets. Chairman s Statement Concurrent with other emerging countries, the Malaysia economy bounced back to expand by 7.2% in 2010 from a contraction of 1.7% in The recovery was on account of strong export demand in the first half of the year and a vibrant domestic economy that was supported by better labour market conditions, increased rural household incomes from higher commodity prices, robust consumer spending, an accommodative monetary policy and a resumption in capital spending by the private sector. After recording a growth of 5.8% in 2009, the domestic construction sector however grew by 5.2% in 2010 on the back of government stimulus packages that centred on civil infrastructure improvements and non-residential buildings. Likewise, the Group s major overseas market, India, grew by an estimated 8.6% during , aided by a rebound in the agricultural sector and aggregate demand. However, persistently high inflation called for tightening monetary policy by the central bank throughout the year. ANNUAL REPORT 2011

56 54 Chairman s Statement (cont d) Kuantan Port, Pahang The Troika Condominium, Kuala Lumpur OPERATING RESULTS Group revenue decreased by 7.3% to RM3, million as compared to RM4, million in the previous year mainly due to lower billings from hampered progress in some major construction projects and lower revenues from the sale of building materials. The Group s operating profit before tax, however, increased by 17.1% to RM million from RM million last year. This was mainly attributable to record results achieved by the Property, Plantation and Infrastructure Divisions and despite a loss suffered by the Construction Division. The Construction Division s performance this year continued to be weighed down by the after-effects of the 2008/09 financial crisis when it suffered from a combination of high material prices, ensuing debtor balance build-ups, irregular order book replenishment opportunities and higher fixed overheads, the combination of which made for very tough operating conditions. As a result, the Division s performance this year was impacted by slower construction progress especially on its overseas projects coupled with a relatively young local order book where site activity has yet to pick up, leading to a 27.4% fall in revenue to RM1, million as compared to RM1, million in the previous year. In addition to these factors, the adoption of FRS 139 resulted in significant impairment provisions made for outstanding receivables and claims which led to the Division incurring a loss of RM79.23 million as compared to a profit before tax of RM30.89 million last year. With the property market continuing its positive momentum throughout the year, the Group s Property Division registered healthy increases in sales volume and selling prices, although it achieved relatively flat revenue growth of 0.3% to RM1, million from RM1, million a year earlier, mainly due to the release of completed bumiputera units in the previous year. The Division s profit before tax improved to a record RM million from RM million last year on the back of better margins achieved and the recognition of a RM63 million gain on disposal of a property investment subsidiary which owned the Aeon Melaka shopping mall. During the year, the Industry Division s operations too were affected by the drop in construction activity. As a result, the Division s revenue decreased by 8.5% to RM million from RM million a year ago. Profit before tax was worse affected as it fell 37.2% to RM million as compared to RM million in the previous year mainly due to eroding margins from intense pricing competition from competing products. The Plantation Division benefited from a robust CPO price environment amidst lower production of fresh fruit bunches from unfavourable weather conditions in the year. This led to a 21.8% increase in its revenue to RM million as compared to RM million in the previous year and a 75.5% jump in profit before tax to RM million from RM million last year. IJM CORPORATION BERHAD

57 55 Employee housing in Sungai Sabang Estate, Sugut Turnover of the Infrastructure Division improved by 15.1% to RM million as compared with RM million last year on the back of higher overall collections from its toll operations, increased cargo throughput recorded at its ports and higher turnover from its power plant in Andra Pradesh. Profit before tax of the Division saw a marked increase to RM million from RM95.88 million, primarily as a result of the improved revenue collection and forex translation gains. BUSINESS OUTLOOK AND OPERATIONAL STRATEGIES FOR FY 2012 Economic indicators increasingly show that growth in advanced economies remain moribund and fragile with the conclusion of quantitative easing measures by the United States of America, contagion fears of possible sovereign debt defaults in the European Union, and a reversion to a more normal pace of growth for emerging economies in Despite lingering global uncertainties, the Malaysian economy is expected to remain resilient in the coming year from continued growth in domestic demand, a strong banking sector as well as the implementation of key initiatives announced by the Government under the Economic Transformation Programme. The Group is expected to perform relatively well in the coming year. Despite the weak results for FY 2011, the Construction Division is expected to do better going forward from improved construction progress and encouraging order book replenishment prospects. The Property Division is expected to sustain its strong performance in the coming year on the back of a strong market and sizeable unrecognised turnover whereas the Industry Division should benefit from the increasing construction activity in Malaysia. The performance of the Plantation Division is expected to be in line with CPO price movements and would be bolstered by the expected recovery in its FFB production. The positive contributions from the tolls, ports, water and power operations of the Infrastructure Division are expected to continue as the concessions mature, boosting the bottom line of the Group moving forward. The Group, while positive in its outlook, remains vigilant in its stance for the near term in light of considerable macroeconomic uncertainties. For the long term, the Group will continue to focus its resources on engaging the regional markets, growing its recurrent income base and reviewing its assets portfolio for opportunities, while pursuing its domestic growth plans. ANNUAL REPORT 2011

58 56 Chairman s Statement (cont d) RELATED PARTY TRANSACTIONS Significant related party transactions of the Group for the financial year are disclosed in Note 53 to the Financial Statements. This note also sets out the recurrent transactions conducted during the period in accordance with the general mandate obtained from shareholders at the Extraordinary General Meeting held on 25 August Except for those disclosed in Note 53 to the Financial Statements, there were no material contracts of the Group involving Directors and major shareholders interest during the period. Laman Granview Puchong DIVIDENDS For the financial year ended 31 March 2011, the Company declared a single tier second interim dividend of 7 sen per share payable on 13 July 2011 to every shareholder on the register on 30 June A single tier first interim dividend of 4 sen per share was earlier paid on 23 December 2010 to every entitled shareholder at the close of business on 15 December In respect of the financial year ended 31 March 2010, an interim dividend of 11 sen per share less tax of 25% was paid on 24 August 2010 to shareholders who were entitled to receive the dividend at the close of business on 30 July CORPORATE GOVERNANCE IJM subscribes to the principles of good corporate governance as the Group believes it is the only way to sustainably enhance shareholder value. This belief underpins all our business undertakings and is acknowledged by our shareholders, evident by the highly institutionalised and large foreign shareholding composition and numerous corporate governance accolades received. Our Corporate Governance Statement can be found on pages 84 to 92. There were no sanctions and/or penalties imposed on the Company and its subsidiaries, Directors or management by relevant regulatory bodies in 2010/11. CORPORATE RESPONSIBILITY IJM s emphasis on Corporate Responsibility ( CR ) reflects its conviction that economic success must be accompanied by a sustainable positive impact on society. This philosophy is guided by the Group s CR Framework and policy statements, and is embraced throughout its operations via a wide range of environmental-friendly and operational best management practices to achieve long term sustainable benefits for all stakeholders. The Group s construction business, cognisant of its imprint on the environment, has committed itself to the code of conduct prescribed in Environmental Management System ISO 14001, while our plantations unit employs good agronomic environmental practices and continues to be involved in the Roundtable on Sustainable Palm Oil (RSPO) to promote sustainable production and use of palm oil. The Group places considerable emphasis in ensuring the highest standards of governance, ethical business conduct and values are practised within its organisation. As part of its philanthropic efforts, the Group carried out numerous community programmes pertaining to social welfare, education and sports development and will continue to identify areas where its support can make a real difference. The Group is also committed to providing for the wellbeing at the workplace through increased awareness, accountability and continued training of employees and contractors towards the conduct of all activities in an ethical, environmentally responsible, safe and healthy manner. More information on the Group s extensive Corporate Responsibility activities is provided on pages 118 to 133. IJM CORPORATION BERHAD

59 57 Sabah Oil & Gas Terminal Project at Kimanis, Sabah KEY LEADERSHIP CHANGES The Board and I wish to thank Tan Sri Dato Krishnan Tan for his outstanding achievement of successfully leading IJM into being the formidable organisation it is today. Tan Sri stepped down as Chief Executive Officer and Managing Director ( CEO&MD ) of the Group on 31 December 2010 and has agreed to continue to serve the Group as Executive Deputy Chairman, a role in which he is still expected to contribute positively to the Group. In addition, I wish to congratulate Tan Sri on being conferred the Darjah Kebesaran Panglima Setia Mahkota (PSM) which carries the title Tan Sri by His Majesty The Yang di-pertuan Agong on the occasion of His Majesty s Official Birthday on 4 June We take this opportunity to congratulate and welcome Dato Teh Kean Ming who has been promoted as the new CEO&MD and Mr Tan Gim Foo who has been appointed as the new Deputy CEO & Deputy Managing Director of the Group, both with effect from 1 January We are confident that their wealth of knowledge and experience in the business and long service with the Group will enable them to lead IJM to the next level of achievement. ACKNOWLEDGEMENT The Board and I would like to record our sincere appreciation to Datuk Hj Hasni bin Harun, who is due to retire this year and will not be seeking reappointment come 24 August Datuk Hj Hasni has been a member of the IJM Board of Directors since 9 May At this juncture, I would also like to announce that I will not be seeking reappointment at this forthcoming Annual General Meeting. After 15 very good years of association with the IJM Group, I would like to take this opportunity to express my gratitude to my fellow Directors, the management and staff of IJM for their support that has made my tenure as Chairman, a pleasurable and enriching experience for me. I wish the Group the very best for continuing and sustainable success in their future endeavours as they grow from strength to strength. On behalf of the Board, I would like to commend the Directors, management and all employees of the Group for their dedication, resourcefulness, commitment and contribution to the Group in the past year. I would also like to take this opportunity to thank the shareholders, associates, clients, bankers, subcontractors and suppliers for their support to the Group. The Group values and looks forward to this continued support as we progress towards new undertakings. Tan Sri Dato Ir (Dr) Wan Abdul Rahman bin Wan Yaacob Chairman ANNUAL REPORT 2011

60 58 THIS IS MY INAUGURAL REPORT TO THE SHAREHOLDERS. IT IS TRULY AN HONOUR FOR ME TO BE GIVEN THE OPPORTUNITY TO ASSUME THE POSITION OF CEO & MD OF THE GROUP. AS IN THE BEST TRADITION OF THIS GROUP, THE TRANSITION THUS FAR HAS BEEN VERY SMOOTH. I TAKE THIS OPPORTUNITY TO THANK THE BOARD FOR THEIR CONFIDENCE IN ME. Dato Teh Kean Ming CEO & Managing Director

61 59 My predecessor, Tan Sri Dato Krishnan Tan, has led the Group into what IJM is today. I take this opportunity to thank him for his strong leadership, foresight and guidance throughout these years. Additionally, I wish to welcome Mr. Tan Gim Foo as my Deputy. Together, we look forward to serving all our stakeholders and take the Group to greater heights of achievement. Resilient in Growth, Rooted in Strength... the two key messages of this year s annual report theme aptly depicts the Group, which has evolved over the years in an environment of increasing challenges, strongly supported by our five core businesses with uncompromising focus on delivering excellence and generating enhanced value to our shareholders. CEO s Review of Operations For the financial year ended 31 March 2011 ( FY 2011 ), the Group achieved relatively good results though turnover declined 7% to RM3, million from the preceding year of RM4, million mainly due to lower billings from the early stages of construction of newly secured projects in the Construction Division, and lower sales of building materials. In terms of the bottom line, our profit before tax ( PBT ) improved by 17% to RM million from the previous year. This was attributable to improved margins from our Property and Plantation Divisions, higher net foreign exchange translation gains in respect of offshore US Dollar denominated borrowings in the Infrastructure Division and a capital gain from the disposal of a subsidiary. Group Performance (RM million) Revenue 5,000 4,000 3,000 2,000 1, PBT 1, Revenue PBT after impairment PBT before impairment ANNUAL REPORT 2011

62 60 CEO s Review of Operations (cont d) Group Revenue by Division* (RM million) Group Revenue by Division* (Proportion %) Construction Property Industry Plantation Infrastructure 1,336 1,179 1, ,841 Plantation 12% Industry 18% FY 2011 Property 26% Infrastructure 14% Construction 30% Diversified Business and Markets of the Group Malaysia Summer Place Apartment, Penang CONSTRUCTION Others 1 2 India Middle East FY 2011 FY 2010 *includes share of associate and joint venture s revenue China Pakistan Vietnam Group PBT by Division (RM million) Group PBT by Division (Proportion %) Argentina Indonesia -79 Singapore Construction 31 Australia Property Industry Plantation 27% Infrastructure 18% Plantation Infrastructure Industry 15% FY 2011 Property 40% Others 33-7 FY 2011 FY 2010 IJM CORPORATION BERHAD

63 61 The performances of our divisions are further elaborated later in this report. Suffice to say at this juncture, and it is clearly evident that the Group s diversified earnings base has helped it to overcome the negative contributions from the Construction Division to produce a good set of results. Shah Alam 2 township Labu Quarry, Negeri Sembilan Kajang-Seremban Highway Replanting in Desa Talisai South Estate, Sandakan PROPERTY INDUSTRY INFRASTRUCTURE PLANTATION Our commitment and efforts toward corporate governance excellence brought recognition. IJM received the Malaysian Corporate Governance Index - Industry Excellence Award (Construction) 2010 in December IJM also garnered other notable awards during the financial year such as the NACRA 2010 Merit Award while IJM Land Berhad, our property subsidiary, was awarded The Edge Property Excellence Award These awards are testimony to our dedication and commitment to performance excellence. On the Corporate Responsibility ( CR ) front, a formal CR Committee has been recently set-up to realign, strategise and formulate the Group s CR initiatives that will influence the way we do business in a sustainable way and contribute to the improvement of the welfare of our people and the community at large. I am truly very excited about this. Several initiatives are in the pipeline; their progress and the activities carried out will be reported in the next annual report. I am honoured to work with the people of IJM. Their unwavering support, dedication and commitment to excellence have helped to bring the Group to where it is today. Over the years they have also volunteered many hours towards social responsibility programmes in the areas and countries where the Group operates. I am well aware that the IJM employees are truly our Mark of Excellence and it is an honour to lead them. Going forward, the business environment will continue to be challenging. I believe that the Group, with its strong fundamentals, the strategic foresight of its leaders, its emphatic commitment to product and service excellence, and backed by the execution skills of our people, is well poised for resilient growth in the future. ANNUAL REPORT 2011

64 62 Prestige Shanthinikethan Bangalore in India The escalating commodity prices of 2008 and the Global Financial Crisis of 2009 had a significant adverse impact on our construction business, especially in our overseas operations. The Construction Division experienced a significant decline in new construction activities during the year while older projects reached completion. Thus, revenue declined 27% to RM1, million from RM1, million the year earlier. The impact on bottom line was more severe as existing contracts especially those in the Middle East and India, suffered cost escalations and work slowdown. New accounting treatments for claims in progress and impairment provisions further impacted its overall performance. The Division recorded a pre-tax loss of RM79 million against a pre-tax profit of RM31 million the previous year. Lulu Reef Access Bridge in Bahrain IJM CORPORATION BERHAD

65 CEO s Review of Operations (cont d) 63 Construction Management Team: left to right top to bottom Tan Gim Foo Dato Goh Chye Koon Soo Sik Sang Tong Wai Yong Pook Fong Fee Ong Teng Cheng Azhar Bin Kaulan Liew Hau Seng Yong Juen Wah Tan Kiam Choon Kok Fook Yu Lee Foh Ching Wan Chee Leong Thomas Foo Jong Jian Chan Kai Leong Construction During the year, the Division successfully completed several projects. The projects completed locally include the Kajang Seremban Expressway, the Senai Aeromall Terminal Building at Sultan Ismail International Airport in Johor Bahru, the SS2 Shopping Mall in Petaling Jaya, the Troika Condominium and Ampersand Luxury Condominium in Kuala Lumpur, Monte Bayu Apartments in Cheras, the Platino Grand Tower and Summer Place Apartments in Penang. Overseas, the Division completed the Prestige Shanthinikethan Bangalore project in India and Lulu Reef Access Bridge in Bahrain. On the order book front, the Division successfully replenished more than RM1.0 billion in order book by securing a number of sizeable jobs. These include the Murum Access Road, Sarawak (Package A1 & B2) for RM247 million, Second Penang Bridge-Batu Kawan Expressway (Package 3B) for RM350 million, Platinum Park Phase 3 (Office Block) for RM461 million and Puteri Harbour Nusajaya (Parcel A1 & A2) for RM219 million. Apart from these, the Division also secured a few projects through its joint ventures such as the National Cancer Institute for RM276 million (our 40% share) and Pahang Raw Water Transfer Project, Lot 1-3B Semantan Pipeline and Related Works for RM161 million (60% share). The Division is optimistic of a turnaround performance in FY 2012 given its existing order book, the buoyant conditions in the domestic property market and the higher public capital spending expected under the Economic Transformation Programme ( ETP ) and the Tenth Malaysia Plan ( 10MP ). ANNUAL REPORT 2011

66 64 CEO s Review of Operations (cont d) SS2 Shopping Mall in Petaling Jaya Senai Aeromall Terminal Building at Sultan Ismail International Airport in Johor Bahru more stringent risk management processes for its overseas operations to enhance its resilience to the increasing uncertainties and key challenges in overseas markets. Considerable efforts were also undertaken to strengthen the human resource function and enhance the existing framework for addressing key weaknesses in overseas operations. Prestige Shanthinikethan Bangalore in India However, rising inflation due to changes in global demand and geopolitical tensions, rising interest rates and adverse weather conditions will pose higher risks to the Division. To mitigate the impact of rising costs, the Division has implemented several measures such as inventory stock-up for major construction materials while strengthening its cost control procedures and effectiveness and bidding selectively for new projects. Taking cognisance that the first loss after more than two decades of good performance was principally attributed to overseas operations, the Division has reviewed and re-strategised its overseas operations especially, to improve its financial performance and operational efficiency. The Division has adopted On the domestic front, the Division has continued to perform well, supported by sound internal control systems and leveraging on our expertise in construction of civil engineering works, high rise buildings and residential housing projects. With the expectation of rising oil prices and costs of major construction materials, the primary focus for the Division now would be to manage costs and intensify its execution of on-going projects for fast completion while maintaining the highest quality standards expected of the Group. The Division has put in concerted efforts to tender for new projects and is optimistic of securing more jobs locally in the coming financial year. Moving forward, the Division believes that the new projects will contribute positively to its bottom line. On the international front, the Division has adopted a more prudent approach to its tendering process due to the intense competition, political instability, currency risk and collection risk in the overseas markets. IJM CORPORATION BERHAD

67 65 Lulu Reef Access Bridge in Bahrain In line with our motto for Safety and Quality, the Division will focus and endeavour to achieve the highest standards to satisfy our customers needs and enhance the value of our end products. In this regard, the Division has invested considerably for the continuous improvement on its safety and quality measures. They include providing adequate training and promoting awareness to all members in the Division, performing regular audits and inspections to assess for compliance and effectiveness as well as providing adequate skilled resources for proper project implementation and execution. The increasing expectations for quality improvement and completion ahead of schedule from our customers will be our primary driver for continuous improvement on existing processes and cost effectiveness. The Division will continuously review its policies and procedures to meet the requirements of our customers despite a volatile environment. With sound risk management framework and internal control functions, the Division is confident and able to respond quickly to emerging risks whilst maintaining proper checks and balances in the system. Construction Support Services: left to right top to bottom James Ponniah Joseph Mohd Kamal Bin Harun Ramar S/O Subramaniam Ng Chin Meng Dammavalam Sreenivasa Rao Soh Wan Heng Jim Mah Foong Kong Cho Foong Khuan Pang Sek Loh Liew Chee Khong Harjeet Singh Lam Choy Loong Casslyn Chong Siew Chen ANNUAL REPORT 2011

68 66 Laman Granview in Puchong The Property Division achieved another year of strong performance by recording a 69% jump in pre-tax profit to RM million (FY 2010: RM million) on the back of a revenue of RM1, million (FY 2010: RM1, million). The profit growth was achieved on the back of improved profit margins from the Division s on-going projects as well as the recognition of a RM63 million gain on disposal of a subsidiary, Delta Awana Sdn Bhd, the property investment subsidiary which owns the Aeon Bandaraya Melaka shopping mall. Bukit Mandarina, Cheras IJM CORPORATION BERHAD

69 CEO s Review of Operations (cont d) 67 Property Management Team: left to right top to bottom Dato Soam Heng Choon Chai Kian Soon Hoo Kim See Edward Chong Sin Kiat Bahrin Bin Baharudin Patrick Oye Kheng Hoon Tham Huen Cheong Toh Chin Leong Shuy Eng Leong Lee Kok Hoo Chong Ching Foong Manjit Singh Property The Malaysian economy experienced a resumption of strong growth in 2010 with an expansion of 7.2% mainly driven by robust domestic demand with strong expansion in private sector activity. In line with improving economic conditions, strong liquidity and rising inflationary fears, the property market continued its upward momentum driven by positive consumer sentiments and accommodative mortgage rate regime. In 2010, the Malaysian property market recorded 376,583 transactions valued at RM billion, which were 11.4% and 32.6% higher respectively compared to The Division s projects throughout the country similarly enjoyed strong take-up rates, which enabled its sales to hit RM1.46 billion, surpassing its previous high of RM1.26 billion in the last financial year. Our projects which saw strong demand included the Light Collection I and II of our prestigious The Light waterfront development and Maritime office suites in Penang, Klang Valley s Laman Granview in Puchong and Villa 33, Bukit Mandarina in Cheras (exclusive semi-detached and bungalow enclaves), shop offices in Bukit Raja, Klang and Laman Baiduri (a lake front condominium project) in Subang Jaya. Our shop offices development adjacent to Aeon Bandaraya Melaka shopping mall called 1 Lagenda received overwhelming response whilst our landed residential development in Johor called Nusa Duta and our Suriamas Suites condominium project enjoyed robust sales. Our on-going townships such as Seremban 2 in Negeri Sembilan, Shah Alam 2 in Puncak Alam, Selangor and Bandar Utama in Sandakan, Sabah, also continued to enjoy strong demand. ANNUAL REPORT 2011

70 68 CEO s Review of Operations (cont d) Bayu Segar in Cheras Nusa Duta township in Johor The Division s FY 2011 revenue and profit contributions were anchored by Penang s Light Linear, Light Point, Summer Place and Platino condominium projects, Klang Valley s Laman Baiduri and Laman Granview, Melaka s 1 Lagenda, Johor s Nusa Duta landed development and our townships in Shah Alam 2, Seremban 2 and Bandar Utama in Sandakan. Platino Grand Tower in Penang In 2011, the Malaysian economy is projected to grow by 5% to 6%, with stronger performance in the second half of the year underpinned by strong domestic demand emanating primarily from private sector activity. Favourable labour market conditions, higher disposable incomes, sustained consumer confidence and ready access to financing will support private consumption whilst capital spending by the domestic oriented industries given the high levels of capacity utilisation and positive business confidence, as well as the implementation of key initiatives under the ETP, will support private investment. Meanwhile, the public sector is expected to remain supportive of growth, with higher capital spending resulting from the implementation of new projects and the acceleration of on-going projects. IJM CORPORATION BERHAD

71 69 On the back of this positive momentum, we will continue with aggressive launches of our on-going developments incorporating new designs and concepts to meet the ever changing customers demand. We will be unveiling our maiden project in Kota Kinabalu, Sabah which is a twin block condominium project with a panaromic view of the Likas Bay. We are also expecting to introduce our new condominium project in Wangsa Maju, Kuala Lumpur strategically located adjacent to our highly successful Riana Green East project and within walking distance to the popular Wangsa Walk shopping centre and Sri Rampai LRT station. In addition, we are actively preparing to bring to the market three of our large scale projects, namely The Light (Commercial Precinct), Canal City and Sebana Cove developments. Whilst the overall macro economic environment appears bright, we will also be cautious of the effects of inflation caused by rising commodities, food and crude oil prices on the demand for our properties as well as on our construction cost. In India, the property market in the state of Andhra Pradesh where the Division has property developments is still very challenging as the decision for a separate Telengana state remains non-conclusive and agitation is still on-going. Amidst this, the construction of Phase 1 of the Rain Tree Park, Dwaraka Krishna Township in Vijayawada, is nearing completion and would be ready for occupancy by end of July Even with the slowdown in this region, we are optimistic to market those completed units. In addition, the Division is planning for a commercial mall strategically located in Hyderabad. With a strong level of committed sales on hand coupled with our strategically located land banks and extensive product mix, the outlook of the Division remains positive. Taman Utama township in Sandakan ANNUAL REPORT 2011

72 ICP Piles used at the Nansha Maritime Safety Department Jetty, China FY 2011 was a challenging year for the Industry Division. Growth in the construction sector slowed in the second half of the financial year resulting in lower demand for construction related materials. Intense competition led to margin erosion. Consequently, the Division s pre-tax profit fell by 37% to RM million on the back of a lower turnover which fell by 9% to RM million. Quarry in Hyderabad, India IJM CORPORATION BERHAD

73 CEO s Review of Operations (cont d) 71 Industry Management Team: left to right top to bottom Khor Kiem Teoh Lee Hock Aun Leong Yew Kuen Tan Boon Leng Pang Chwee Hoon Ooi Ka Tong Leong Siew Wah Tan Khuan Beng Faizal Amir B Mohd Zain Choy Teik San Wong Siew Meng Leong Chee Hong Chan Kok Keong Low Hong Imm Industry The Division s core business of manufacturing and sales of PSC piles faced several challenges. The number of construction projects in the domestic and overseas markets was limited by the financial crisis the year before, making the market extremely competitive and putting pressure on selling prices. Despite the total tonnage of piles delivered falling only 3.5% year on year, revenue decreased by 11% to RM million. Operating profits decreased substantially by 38% to RM74.30 million. On a positive note, the Division contained further margin erosion through cost optimization measures and sound procurement management. During the financial year, supplies for a number of local projects such as the Integrated Transportation Complex and Satellite Building for LCCT, Selangor; CT6 at Westport, Klang, Selangor; Hydrocarbon Storage at Tg. Bin, Johor; and Sabah Oil & Gas Terminal Project at Kimanis, Sabah were secured. The Government is expected to roll out more projects under the 10MP and ETP in FY More oil and gas facilities and heavy industries development projects are expected to take off. The Division is confident of securing orders from these projects. Additionally export orders have increased by 40% in terms of total tonnage. Major projects secured during the financial year were supplies for the Mega Shipyard of Sembawang and Motor Sports Hub Projects in Singapore. These projects are expected to continue into FY A better construction outlook is foreseen in Singapore and the Division expects higher exports in FY 2012, which augurs well for the Division s high capacity plant in Senai, Johor. On the operational front, production costs were well managed through stringent controls and continued research & development. Our laboratory has successfully implemented green solution with zero energy system using advanced admixture for pile production without energy input, thus achieving significant cost savings and reducing emission of carbon dioxide into the atmosphere. ANNUAL REPORT 2011

74 72 CEO s Review of Operations (cont d) Through constant emphasis on high quality products, the Division achieved further recognition when seven of its plants were awarded the certification of SS EN 206-1:2009, SS544: Part 1 & 2:2009 and SAC CT06:2010 during the financial year by Certification International (Singapore) Pte Ltd (CIS) which reaffirms the advance of the Division s concrete batching plant technology. It was however a difficult year for ICP Jiangmen which recorded a loss before tax of RM3.34 million compared to profit before tax of RM7 million in the prior year. Revenue contracted by 43% due to lower delivery and selling prices. The marine piles market in Guangdong Province contracted in FY 2011 due to postponement of projects implementation caused by tightening measures by the Chinese Government. Major projects successfully supplied to were Crane Rail Projects for Fangcheng and Qingzhou Ports at Beibu Gulf, Guangxi; Cruise Terminal Breakwater Structure s Foundation Work at Nansha; Bulk Cargo Terminal at Gaolan, Zhuhai and China Rail Wuhan Bridge Heavy Industries Group Co. Ltd. s Jetty at Zhuhai. Major port developments, jetties, coal power stations, petrol-chemical plants and ship-building yards are expected to be implemented in the Pearl Delta Region. With the continued growth in China s economy, the outlook of the Division s China operations remain positive beyond FY Durabon Sdn Bhd ( DSB ) achieved a revenue of RM90.66 million and PBT of RM12.61 million, a decrease of 4% and 9% respectively compared with previous financial year. Lower revenue was attributed to decrease in selling prices due to intense competition from Chinese manufacturers. Sales volume however increased marginally by 0.3% due to higher export sales to Vietnam and Indonesia. DSB will intensify its marketing efforts to Vietnam and Indonesia where more construction activities are expected to come on stream. Soaring commodities prices and weakening US Dollar posed immense challenges on the business of Expedient Resources Sdn Bhd ( ERSB ), an export-oriented subsidiary engaged in the manufacturing and supply of rubber underlay and reclaimed rubber. ERSB focused on high-margin niche market to avoid direct competition with Chinese underlays. Consequently, revenue dropped marginally by 1% to RM15.60 million while PBT improved by 125% to RM0.09 million from last year. ERSB is well placed to take advantage of the robust demand for reclaimed rubber. Turnover in the quarries improved by 8% to RM million on better performances from Junjung and Labu quarries supported by in-house sales, 2nd Penang bridge and double tracking projects. Meanwhile, revenues from quarries in Kuantan, Pahang and Kuang Selangor remained flat. In Johor, sales from Kulai and Ulu Choh quarries remained weak due to lack of construction activities. The premix operations in Kuang Selangor and Ulu Choh, Johor also suffered sales decline by 58% and 31% respectively due to intense competition. As such, pre-tax profits dropped by 13% to RM22.20 million due to margin erosion, higher spare parts costs and increase in royalty rates. Ready mixed plant at Islamabad, Pakistan ICP Piles used at the CT6 at Westport Klang, Selangor IJM CORPORATION BERHAD

75 73 The Division s efforts to establish a quarry business in India has begun to bear fruit as they successfully acquired the assets and right to operate a quarry at Medchal, Hyderabad. It is currently exploring new quarries in other parts of India. The Division is also pursuing more quarries in strategic locations in Malaysia. Strong Mixed Concrete Sdn Bhd ( SMC ) recorded a 12% jump in revenue to RM53.40 million on higher volume. However, rising raw materials prices and fuel costs resulted in SMC posting a lower PBT which dropped by 12% to RM0.91 million. In India, turnover for the ready-mixed sector expanded by 20% to RM96.10 million on higher selling prices following the uptrend in cement prices. Unfortunately, sales in two plants in Hyderabad were adversely affected by the Telangana issue. A pre-tax profit of RM1.75 million was registered for FY 2011 which was 10% lower than previous year due to the lag in selling prices which could not keep pace with frequent cement price increases. The instability in Pakistan and lack of foreign aid resulted in lesser jobs in Islamabad. Furthermore, the massive flood worsened the overall situation. Nevertheless, turnover increased by 33% to RM5.69 million and pre-tax profit achieved was RM0.16 million. The Pakistan Government is working towards bringing in more foreign direct investments. Meanwhile, the Karachi plant had not been performing well due to political and security reasons causing sales to drop by 62% to RM4.5 million and a pre-tax loss of RM0.22 million. Turnover for the steel wire mesh business in India fell by 21% to RM3.60 million and suffered a higher loss of RM3.96 million compared to previous year s loss of RM1.59 million due to an impairment adjustment of RM1.9 million on its assets following the ceasing of operations in view of recurring losses. The scaffolding rental business of Scaffold Master Sdn Bhd registered a drop of 31% in turnover to RM6.39 million on lower rental rates and in-house demand. In tandem, pre-tax profit fell by 32% to RM2.60 million. Nevertheless, in-house demand as well as from external markets is expected to increase significantly. The lower US Dollar is a boon as accessories from China is much cheaper now. As such, the business expects better performance in the next financial year. Kemena Industries Sdn Bhd, a 55% subsidiary in Bintulu, Sarawak is engaged in the production of ready-mixed concrete and precast reinforced concrete products. Its turnover fell by 7% to RM25.23 million due to completion of the Sungai Plan project and pre-tax profits dropped by 12% to RM3.16 million. Spirolite (M) Sdn Bhd, a 38% associate manufacturing pipes, tubes, tanks and containers contributed a turnover of RM10.76 million and a pre-tax profit of RM1.23 million. For the coming financial year, the Division hopes to see more jobs roll out under the ETP and 10MP, which should augur well for the Industry Division. However, the Division will remain vigilant and proactive to abrupt changes in today s highly volatile economic environment. XinHui Paper Mill Jetty, Jiangmen, China ANNUAL REPORT 2011

76 74 Rakanan Jaya North Estate Amidst the global economic uncertainties stemming from the effects of the global financial crisis in 2008 and 2009 as well as the impact of adverse weather conditions on palm oil production, the Division has proven its resilience and sustainability by charting another year of record performance with revenue growing by 22% to achieve RM million and pre-tax profits increasing by 75% to reach RM million. These financial results were propelled by the strength of crude palm oil ( CPO ) prices driven by sturdy supply and demand fundamentals throughout the reporting year. In line with the appreciation of CPO prices, the Division achieved a higher average CPO selling price of RM2,760 per tonne (FY 2010: RM2,246 per tonne), an increase of 23% over the preceding year. Sabang Palm Oil Mill II, Sugut IJM CORPORATION BERHAD

77 CEO s Review of Operations (cont d) 75 Plantation Management Team: left to right top to bottom Joseph Tek Choon Yee Puru Kumaran Velayuthan A/L Tan Kim Song Ng Chung Yin Madusoodanan S Kugarajah Francis Chai Min Fah P K Venugopal Plantation While the commodity market was favourable to the Division, as an upstream producer, the changing weather patterns however, affected the production of fresh fruit bunches ( FFB ). The operation experienced El Nino induced drought in early part of 2010 and La Nina condition of incessant rain thereafter stretching into the first quarter of As a result, the oil palms suffered biological stress resulting in lagged and lower FFB production by 5% to 575,210 tonnes (FY 2010: 604,663 tonnes) and total FFB milled inclusive of outside fruit purchase, also dropped by 6% to 708,522 tonnes (FY 2010: 756,870 tonnes). The total planted hectarage in Sabah as at the financial year end stood at 25,199 hectares (FY 2010: 25,222 hectares) of which 96% was mature hectarage. During the financial year, the Division continued its planting programme in Indonesia and increased its planted hectarage to a total of 13,606 hectares as at year end (FY 2010: 5,306 hectares). Overall, 65% of the total planted hectarage is located in Sabah (Sandakan and Sugut regions), while 35% is in Indonesia. Details of the Division s oil palm age profile are as follows:- Ha % MALAYSIA Mature (> 20 years) 1,980 8 Mature - Prime (8-20 years) 19, Mature - Young (4-7 years) 2, Immature (1-3 years) Total 25, INDONESIA Mature (8-20 years) Immature (1-3 years) 13, Total 13, Mature palms in Desa Talisai North Estate, Sandakan CPO production for the year was 151,096 tonnes (FY 2010: 163,452 tonnes) from its four palm oil mills with a total capacity of 195 tonnes of FFB per hour. Due to the adverse weather conditions affecting cropping pattern, CPO production was lower by 8% while palm kernel ( PK ) production dropped by 4% to 32,574 tonnes (FY 2010: 33,897 tonnes). The average CPO extraction rate was 21.3%, a marginal decline from 21.6% in the preceding year while PK extraction rate recorded a slight improvement at 4.6% (FY 2010: 4.5%). ANNUAL REPORT 2011

78 76 CEO s Review of Operations (cont d) Use of pot-tray system in pre-nursery to facilitate easy movement The Division s kernel crushing plant crushed 32,909 tonnes (FY 2010: 34,201 tonnes) of kernel producing 14,941 tonnes (FY 2010: 15,147 tonnes) of crude palm kernel oil to achieve an improved extraction rate of 45.4% (FY 2010: 44.3%). Total palm kernel expeller output was 16,457 tonnes (FY 2010: 17,092 tonnes) and achieved an extraction rate of 50.0% (FY 2010: 50.0%). Contributions made to the Government in the form of Sabah sales tax and windfall profit levy as well as palm oil cess paid to the Malaysian Palm Oil Board ( MPOB ) amounted to RM37.92 million (FY 2010: RM31.13 million). Rising production costs mainly attributable to fertiliser, fuel and labour, have been a concern for years. The Division remains vigilant in its focus in curbing and mitigating the rising costs. During the year, availability of skilled workers remained a major constraint. Various incentive schemes were introduced to attract and retain skilled workers. To meet the demand for trained human capital in Indonesia, the Division carried out cadet training programmes for young graduates from Malaysia and Indonesia. In addition to critical plantation operations knowledge and agronomy practices, the cadets are also exposed to the plantations supply chain. The Division continues to place great importance on nurturing sustainability whereby caring for the environment is integral in ensuring the long-term sustainability of the business. The Division also implemented good environmental management practices in soil and water conservation, utilisation of waste by-products, integrated pest management as well as zero-burning policy. The Division practices recycling of palm by-products and mill effluent whereby empty fruit bunches ( EFB ) go through the process of composting with palm oil mill effluent ( POME ). The application of compost which Water catchment in Desa Talisai South Estate for production and domestic consumption contains high nitrogen, to the fields essentially serves as organic fertilisers that enhance the soil condition while improving nutrient uptake, enabling rationalisation of inorganic fertilisers usage and mitigating high fertilisers cost. During the reporting period, the Division successfully achieved its target of being fully certified under MPOB s Code of Practices ( CoPs ) for quality, food safety and sustainability. All of its operating units including 1 nursery, 11 estates, 4 palm oil mills and 1 kernel crushing plant in Sabah have been certified. The expansion project in Indonesia gained momentum and made significant progress. Total planted area increased by 156% to 13,606 hectares as at FY 2011 (FY 2010: 5,306 hectares). Another 5,223 hectares are ready for field planting in the current year. The established nurseries held over three million seedlings at year end and they would be available for planting to cover over 17,000 hectares. Our first palm oil mill in Indonesia commenced ground works on 11 May 2010 and is expected to commence operations by end of The joint venture with Godrej Agrovet Limited ( GAL ) in Godrej IJM Palm Oil Limited ( GIPOL ) to carry out the business of purchasing oil palm FFB and milling in Goa and Karnataka, India, was terminated on 24 November Due to the change in business environment and the focus on expansion into Indonesia, the Division disposed its 51% equity interest in GIPOL. Similarly, the joint venture with CTI Biofuel, LLC for carrying out bio-diesel business, was dissolved on 1 December The Division also disposed 50% equity interest in Loongsyn Sdn Bhd ( LSSB ), an associate, on 25 March LSSB s principal activities are wholesaling and retailing of agricultural fertilisers and chemicals, operation of oil palm plantations and investment holding. IJM CORPORATION BERHAD

79 77 During the financial year, the Division assumed control of two Indonesian entities, PT Prima Alumga ( PTPA ) and PT Indonesia Plantation Synergy ( PTIPS ). PT Primabahagia Permai ( PTPP ), a subsidiary of the Division has been nominated to acquire the shares in PTPA and PTIPS. The completion of shares acquisition is pending approval from the Indonesia Investment Coordinating Board. Looking ahead, the Division remains optimistic on the outlook of palm oil industry as global demand for palm oil is expected to enjoy steady growth in the coming years, driven by higher consumption from emerging markets and increased usage for oleo and biodiesel, against a back drop of production constraint for substitute oil seeds. CPO prices are currently trading above RM3,000 per tonne level. If these positive trends continue, the Division can expect to deliver another good performance in the coming year, barring unforeseen circumstances. FFB Quality Day campaign at the palm oil mill in Sugut As the Indonesian operations gather pace, the Division shall place greater strides in executing the expansion programme and working in diligence to achieve good results in the near term and future. Plantation Statistics Unit FY 2011 FY 2010 FY 2009 FY 2008 FY 2007 ESTATES Oil Palm Area Sabah, Malaysia Mature (>20 years) hectare 1, Mature-Prime (8-20 years) hectare 19,694 17,380 14,447 15,600 11,876 Mature-Young (4-7 years) hectare 2,600 5,505 7,764 7,040 10,673 Immature (1-3 years) hectare 925 1,632 2,136 2,653 2,871 Kalimantan, Indonesia Mature (8-20 years) hectare 563 Immature (1-3 years) hectare 13,043 5, Total Planted Area hectare 38,805 30,528 25,555 25,293 25,420 FFB Production tonne 575, , , , ,871 Yield Per Mature Hectare tonne MILLS FFB Processed tonne 708, , , , ,050 Palm Kernels Processed tonne 32,909 34,201 40,705 52,954 55,778 Production Crude Palm Oil tonne 151, , , , ,095 Palm Kernel tonne 32,574 33,897 35,022 34,269 30,277 Crude Palm Kernel Oil tonne 14,941 15,147 17,721 23,042 24,038 Palm Kernel Expeller tonne 16,457 17,092 20,922 27,717 29,004 Extraction Rates Crude Palm Oil % Palm Kernel % Crude Palm Kernel Oil % Palm Kernel Expeller % AVERAGE SELLING PRICES Crude Palm Oil RM/tonne 2,760 2,246 2,641 2,544 1,511 Palm Kernel RM/tonne 1,927 1,116 1,180 1, Crude Palm Kernel Oil RM/tonne 4,259 2,555 3,107 3,251 1,863 Palm Kernel Expeller RM/tonne ANNUAL REPORT 2011

80 Jaipur-Mahua Tollway, India The Infrastructure Division reported an improved turnover by 15% to RM million (FY 2010: RM million) mainly due to higher collections from Malaysian and overseas toll roads, local port concessions and our Indian power plant. Correspondingly, the Division s pre-tax profits rose by 33% to RM million (FY 2010: RM95.88 million) on the same account. The Division s infrastructure assets comprised of nine (9) toll concessions (with three (3) in Malaysia, five (5) in India and one (1) in Argentina), two (2) ports - one each in Pahang and Terengganu, a power plant in India and a water treatment plant in Vietnam. Western Access Tollway, Argentina IJM CORPORATION BERHAD

81 CEO s Review of Operations (cont d) 79 Tolls Management Team: Port Management Team: left to right top to bottom James Wong Tet Foh Neoh Soon Hiong Wan Salwani Binti Wan Yusof Cletus Joseph A Pereira Yap Pak How Chua Lay Hoon Hwa Tee Hai Ong See Chang left to right top to bottom Dato Ho Phea Keat Haji Khasbullah Bin A Kadir Azah Bin Abdul Aziz Azahari Bin Muhammad Yusof Infrastructure Toll Roads On the domestic front, the toll road concessions continue to contribute substantial results to the Infrastructure Division. Presently, there are three (3) operating toll roads, namely the wholly-owned 16.6 Km Besraya Highway ( Besraya ), 19.6 Km New Pantai Highway ( NPE ) and 50%-owned 43.3 Km Kajang Seremban Highway ( LEKAS ) holding concession periods of 44, 34 and 33 years respectively. During the financial year, Besraya s turnover increased by 51% to RM61.16 million from previous year. Its pre-tax profit increased by 64% to RM40.28 million. The increase was mainly attributable to deferred income recognition for Salak Jaya toll plaza abolishment, toll hike deferment and lower finance cost. The Besraya Eastern Extension ( BEE ) concession was awarded during the financial year and will provide better connectivity to the Northern and North-Eastern parts of Kuala Lumpur. Construction of the BEE has commenced and is expected to be completed in It will add another 12.3 Km length to the existing Besraya. NPE also performed better. It recorded a 9% higher turnover to RM million. Its pre-tax profit of RM27.31 million was 23% higher than prior year. The improved performance was due to strong growth in traffic volume, lean operating cost and decreased finance costs. Its concession agreement which provides for toll rates revision for all classes of vehicles effective 1 January 2009 was deferred by the Government until present to ease the public s financial burden during the economic slowdown. On 18 February 2011, the Government also reduced the toll fare for Class 1 vehicles at PJS2 toll plaza from RM1.60 to RM1.00 to ease the burden of residents living nearby effective for 5 years. The reduction will be compensated by the Government. ANNUAL REPORT 2011

82 80 CEO s Review of Operations (cont d) Traffic control centre at New Pantai Highway The Toll Division optimizes capital management in order to enhance its cash flow position through various means including rescheduling its debt repayments. In April 2010, NPE restructured the remaining Primary Senior BBA Notes of RM370.0 million whereby 30% of the nominal value for each Series was redeemed and 20% was restructured on pro-rata basis to create new Series of RM74.0 million with a profit rate 5.55% per annum until As a result, NPE s repayment profile has been lengthened to match the concession cash flows and its covenants relaxed to enable distribution of excess cash to its shareholder. LEKAS was completed in early August 2010 and full tolling commenced in September During the financial year, LEKAS contributed a turnover of RM15.76 million (FY 2010: RM5.58 million) and a pre-tax loss of RM23.71 million (FY 2010: RM12.83 million) mainly due to highway assets amortisation, finance cost and low traffic volume. The deferment of North-South Expressway s scheduled toll-rate hikes since 2008 had resulted in relatively cheaper tariffs and indirectly contributed to LEKAS s low traffic performance. Moreover, the developments and pace of occupancy along LEKAS s alignment have remained subdued. Going into FY 2012, the Toll Division is confident of continued performance to achieve higher productivity and cost efficiency to sustain profitability. Moving forward, the Division s portfolio will expand with the inclusion of the NPE Extension Project and the 286 Km West Coast Highway Project through IJM s investment in Kumpulan Europlus Berhad. In India, the Division s operating toll roads comprising wholly-owned Rewa Tollway (387 Km) and 35%-owned Swarna Tollway (145 Km) have been operating for seven years with improved traffic counts. The newer tollways are the fully-owned Jaipur-Mahua Tollway (108 Km), 50%-owned Chilkaluripet-Vijayawada Tollway (79 Km) and 50%-owned Trichy Tollway (93 Km). Construction work on the Six Laning of Chilkaluripet- Vijayawada Tollway continues during the financial year. The Indian tollways hold concession periods ranging from 16 to 31 years. IJM CORPORATION BERHAD

83 81 Swarna Tollway, India Night view of Swarna toll plaza, India During the financial year, Indian tollways contributed higher revenues of RM million (FY 2010: RM98.34 million) mainly due to turnover contributions from Jaipur-Mahua and Trichy tollways, which commenced full-tolling in mid FY Pre-tax profits were RM18.79 million (FY 2010: RM21.61 million) mainly due to recognition of net foreign exchange translation gains in relation to offshore US Dollar-denominated borrowings. Without the gains, the Indian Toll Division would be in a pre-tax loss position of RM8.55 million (FY 2010: RM22.41 million) which was lower this year due to the maturing profile of existing assets with improved toll collections. It is anticipated that Indian tolling operations, which are in their early stages of the concessions, will continue to face challenges in terms of traffic volumes and high debt costs. The Group had entered into conditional share purchase agreements to acquire additional stakes totaling 45% in Swarna Tollway in October 2010 and June 2011, and an additional stake of 49% in Chilkaluripet-Vijayawada Tollway in May This is expected to bode well for the Group to build on its Infrastructure Assets portfolio overseas for future recurring income streams. In Argentina, the Group s 20%-owned Grupo Concesionario del Oeste S.A. ( GCO ) which operates a 21-year concession of the Western Access Tollway (56 Km) in Buenos Aires, contributed a higher turnover by 14% to RM45.08 million from prior year due to revisions in toll rates for category 2 and rush-hour vehicles in December 2009 plus a second revision of 20% in all categories in October Overall traffic volume has recovered by 7% to million passenger car units from prior year. As a result, the Group s share of profit recovered to RM1.23 million from a previous year loss of RM0.53 million. GCO s outlook for 2011 is expected to be positive, having already seen a good recovery in traffic levels during It is anticipated that the Group s prospects in the toll road business will continue to remain positive with limited operational and financial risk exposure and will continue to contribute a steady recurring income stream to the Group s earnings. ANNUAL REPORT 2011

84 82 CEO s Review of Operations (cont d) Kuantan Port, Pahang Unloading steel pipes at Kuantan Port Ports The two port concessions in the Group s stable of concession assets contributed positively to its bottom-line. During the financial year, Kuantan Port achieved an improved pre-tax profit of 21% to RM49.50 million (FY 2010: RM40.97 million) on the back of higher turnover of RM million (FY 2010: RM million). Cargo throughput recorded was 12.7 million freightweight tonnes ( FWT ) (FY 2010: 11.0 million FWT), an increase of 15% from prior year contributed by liquid chemical exports, mineral oil and petroleum imports, iron ore exports and containers following the recovery from the global slowdown. The Group s 39% stake in Kemaman Port, Terengganu which operates the East Wharf and Liquid Chemical Berth performed well. The Group recorded its share of turnover of RM13.42 million (FY 2010: RM13.18 million) and pre-tax profits share of RM2.89 million (FY 2010: RM3.32 million) arising from cargo handling and marine services. During the financial year, the Port Division continued to invest in port facilities that would yield good returns to its bottom line. The division plans to construct three new berths costing RM150 million in order to handle additional cargo and mitigate the current berth congestion due to significant increase in iron ore and steel pipes cargoes. On the international front, the Port Division is exploring business opportunities in the development, management and operations of ports around the region. The Division anticipates the global maritime trade will continue to play a significant role in the years to come and this will augur well for the Port Division as it continues to provide steady contributions to the Group in future years. Power Plant In India, the Group s sole power plant concession in Andhra Pradesh is its 20%-owned Gautami Power, a 469 MW natural gas based Combined Cycle Power Plant. The power plant contributed a higher turnover by 11% to RM million (FY 2010: RM million) and increased pre-tax profits by 44% to RM13.84 million (FY 2010: RM9.61 million) for the Group s share of results during the financial year. The investment is expected to contribute regular income streams to the Group throughout the concession period until year Water Treatment Plant The 36%-owned associate, Binh An Water Corporation Ltd in Vietnam contributed a net profit of RM3.05 million (FY 2010: RM3.50 million) to the Group s share of results during the financial year. The investment is expected to contribute stable income streams to the Group until the year IJM CORPORATION BERHAD

85 83 Gautami Power Plant in Andhra Pradesh, India Besraya Highway CONCLUSION Notwithstanding the Group s overall mixed performance during the financial year, I believe that IJM has performed relatively well in the face of a competitive and challenging market environment. The prospects for the Construction Division in the next financial year is encouraging as order book replenishment remains positive as the Government continues to emphasise on infrastructure spending coupled with increasing private sector developments. The present mortgage regime, improved consumer sentiments and higher disposable incomes together with our strong unbilled sales in excess of RM1 billion will continue to drive our Property Division to scale greater heights. With the rollout of more ETP and oil and gas development projects, our Industry Division expects its order book and financial performance to improve in the future. Our Plantation Division is anticipated to deliver another round of good performance if prices remain above RM3,000 per tonne levels combined with the expected recovery in FFB production. Meanwhile, our maturing Infrastructure assets are expected to contribute to the Group s earnings with steady recurring income streams generated from tolling, port, water and power operations. The Group continues to remain vigilant in its actions and proactive in management while operating in a robust and highly competitive business environment. The Group s operating performance for the forthcoming financial year is anticipated to be satisfactory as the Group continues to generate profitable growth. In closing, I want to personally thank the people of IJM for their hard work, discipline and dedication to the Group. While this past year was challenging, I believe we have emerged as an even stronger company and well positioned for growth... Rooted in Strength, Resilient in Growth. Dato Teh Kean Ming CEO & Managing Director ANNUAL REPORT 2011